Do Azure-Hosted LLMs Run Locally in IRAP-Compliant Regions (e.g. Australia Central)?

Hi team,

We’re exploring options to use LLMs (Large Language Models) in an IRAP PROTECTED workload, integrated with Elastic Observability.

Due to compliance restrictions:

We cannot use public/shared cloud models (like Azure OpenAI in US/EU regions).

We also cannot use on-premise hosting, as Elastic currently has no roadmap for on-prem LLM support.

Key question: Does Microsoft offer any LLM deployment (e.g. Azure OpenAI or other managed options) where the model and inference run locally in IRAP-accredited regions such as Australia Central or Australia Central 2?

We’re trying to confirm if there is any LLM capability hosted entirely within sovereign/DGC environments — or if all current LLM offerings involve cross-region access to models.

Happy to explore Azure ML, AKS, or other options if that's the only way to locally host models ourselves.

Thanks in advance!