Microsoft expands Sovereign Cloud with secure offline support for large AI models

Digital sovereignty is gaining urgency as organisations seek infrastructure that remains secure and reliable under strict regulatory conditions.

Microsoft is expanding its Sovereign Cloud to help public bodies, regulated industries and enterprises maintain control of data and operations even when environments must operate without external connectivity.

The updated portfolio allows customers to choose how each workload is governed, rather than relying on a single deployment model.

Azure Local now supports disconnected operations, keeping mission-critical systems running with full Azure governance within sovereign boundaries. Management, policies and workloads stay entirely on site, so services continue during periods of isolation.

Microsoft 365 Local extends the resilience to the productivity layer by enabling Exchange Server, SharePoint Server and Skype for Business Server to run locally, giving teams secure collaboration within the same protected boundary as their infrastructure.

Support for large multimodal AI models is delivered through Foundry Local, which enables advanced inference on customer-controlled hardware using technology from partners such as NVIDIA.

Such an approach helps organisations bring modern AI capabilities into highly restricted environments while preserving control over data, identities and operational procedures.

Microsoft positions it as a unified stack that works across connected, hybrid and fully disconnected modes without increasing operational complexity.

These additions create a framework designed for governments and regulated industries that regard sovereignty as a strategic priority.

With global availability for qualified customers, the Sovereign Cloud aims to preserve continuity, reinforce governance and expand AI capability while keeping every layer of the environment within local control.

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Over 299 million people gain internet access through global connectivity

Microsoft has exceeded its 2025 internet access target, reaching over 299 million people globally, including more than 124 million in Africa. The milestone reflects years of partnerships to connect communities lacking reliable digital access.

Efforts are shifting from simple coverage to holistic digital participation, combining connectivity with energy, devices, digital skills, and AI tools.

Microsoft aims to enable meaningful adoption, ensuring communities can fully engage in the growing AI economy. Partnerships focus on scalable, community-based models aligned with national development priorities.

As adoption accelerates, Microsoft plans to expand its approach by integrating financing, energy access, and community-first AI solutions. The initiative highlights the need for long-term, locally led strategies for fair participation in the digital and AI economy.

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New Relic advances AI agents for enterprise observability

The expansion into enterprise AI comes with a no-code platform from New Relic that allows companies to build and supervise their own observability agents.

A system that assembles AI-driven monitors designed to detect bugs and performance problems before they affect users, instead of leaving teams to rely on manual tracking.

It also supports the Model Context Protocol so organisations can link external data sources to the agents and integrate them with existing New Relic tools.

The company stresses that the platform is intended to complement other agent systems rather than replace them.

As AI agent software spreads across the market, enterprises are searching for ways to manage risk when giving automated tools access to internal systems.

Industry players such as Salesforce and OpenAI have already introduced their own agent platforms, and assessments from Gartner describe these frameworks as essential infrastructure for wider AI adoption.

New Relic also introduced new tools for the OpenTelemetry framework to remove friction around observability standards.

Its application performance monitoring agents now support OTel data, allowing enterprises to manage these streams in one place instead of operating separate collectors.

The update aims to reduce fragmentation that has slowed OTel deployment across large organisations and to simplify how engineering teams handle diverse observability pipelines.

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NVIDIA drives a new era of industrial AI cybersecurity

AI-driven defences are moving deeper into operational technology as NVIDIA leads a shift toward embedded cybersecurity across critical infrastructure.

The company is partnering with firms such as Akamai Technologies, Forescout, Palo Alto Networks, Siemens and Xage Security to protect energy, manufacturing and transport systems that increasingly operate through cloud-linked environments.

Modernisation has expanded capabilities across these sectors, yet it has widened the gap between evolving threats and ageing industrial defences.

Zero-trust adoption in operational environments is gaining momentum as Forescout and NVIDIA develop real-time verification models tailored to legacy devices and safety-critical processes.

Security workloads run on NVIDIA BlueField hardware to keep protection isolated from industrial systems and avoid any interference with essential operations. That approach enables more precise control over lateral movement across networks without disrupting performance.

Industrial automation is also adapting through Siemens and Palo Alto Networks, which are moving security enforcement closer to workloads at the edge. AI-enabled inspection via BlueField enhances visibility in highly time-sensitive environments, improving reliability and uptime.

Akamai and Xage are extending similar models to energy infrastructure and large-scale operational networks, embedding segmentation and identity-based controls where resilience is most critical.

A coordinated architecture is now emerging in which edge-generated operational data feeds central AI analysis, while enforcement remains local to maintain continuity.

The result is a security model designed to meet the pressures of cyber-physical systems, enabling operators to detect threats faster, reinforce operational stability and protect infrastructure that supports global AI expansion.

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AI data centre surge pushes electricity demand in the UK to new heights

The UK faces rising pressure on its electricity system as about 140 new data centre projects could demand more power than the country’s current peak consumption, according to Ofgem.

The regulator said developers are seeking about 50 gigawatts of capacity, a level driven by rapid growth in AI and far beyond earlier forecasts.

Connection requests have surged since late 2024, placing strain on a grid already struggling to support vital renewable projects that are key to national climate targets.

Work needed to connect expanding data centre capacity could delay schemes considered essential for decarbonisation and economic growth, instead of supporting the transition at the required pace.

The growing electricity footprint of AI infrastructure also threatens the aim of creating a virtually carbon-free power system by 2030, particularly as high costs and slow grid integration continue to hinder progress.

A proposed data centre in Lincolnshire has already raised concerns by projecting emissions greater than those of several international airports combined.

Ofgem now warns that speculative grid applications are blocking more viable projects, including those tied to government AI growth zones.

The regulator is considering more stringent financial requirements and new fees for access to grid connections, arguing that developers may need to build their own routes to the network rather than rely entirely on existing infrastructure.

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Global microchip shortage pushes electronics prices higher

South African consumers may soon pay more for smartphones and laptops due to a global shortage of memory chips. The high demand is largely driven by AI data centres, which require powerful microchips to operate.

Tech experts report that major AI companies are acquiring large quantities of these chips for their own data centres, limiting supply for other industries. At the same time, importing chips from regions such as China has become more difficult because of trade tensions and tariffs.

Industry leaders, including Apple’s Tim Cook and Tesla’s Elon Musk, have expressed concern over the impact on production and business operations. The strain is being felt across the tech sector as companies compete for the limited supply of components.

With no immediate solution, the increased costs are expected to be passed down to consumers. Analysts warn that the combination of high demand, supply constraints, and global trade issues will make technology and appliances more expensive for consumers.

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OpenClaw exploits spark a major security alert

A wave of coordinated attacks has targeted OpenClaw, the autonomous AI framework that gained rapid popularity after its release in January.

Multiple hacking groups have taken advantage of severe vulnerabilities to steal API keys, extract persistent memory data, and push information-stealing malware instead of leaving the platform’s expanding user base unharmed.

Security analysts have linked more than 30,000 compromised instances to campaigns that intercept messages and deploy malicious payloads through channels such as Telegram.

Much of the damage stems from flaws such as the Remote Code Execution vulnerability CVE-2026-25253, supply chain poisoning, and exposed administrative interfaces. Early attacks centred on the ‘ClawHavoc’ campaign, which disguised malware as legitimate installation tools.

Users who downloaded these scripts inadvertently installed stealers capable of full compromise, enabling attackers to move laterally across enterprise systems instead of being confined to a single device.

Further incidents emerged on the OpenClaw marketplace, where backdoored ‘skills’ were published from accounts that appeared reliable. These updates executed remote commands that allowed attackers to siphon OAuth tokens, passwords, and API keys in real time.

A Shodan scan later identified more than 312,000 OpenClaw instances running on a default port with little or no protection, while honeypots recorded hostile activity within minutes of appearing online.

Security researchers argue that the surge in attacks marks a decisive moment for autonomous AI frameworks. As organisations experiment with agents capable of independent decision-making, the absence of security-by-design safeguards is creating opportunities for organised threat groups.

Flare’s advisory urges companies to secure credentials and isolate AI workloads instead of relying on default configurations that expose high-privilege systems to the internet.

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EU–US draft data pact allows automated decisions on travellers

A draft data-sharing agreement between the EU and the US Department of Homeland Security would allow automated decisions about European travellers to continue under certain conditions, despite attempts to tighten protections.

The text permits such decisions when authorised under domestic law and relies on safeguards that let individuals request human intervention instead of leaving outcomes entirely to algorithms.

A deal designed to preserve visa-free travel would require national authorities to grant access to biometric databases containing fingerprints and facial scans.

Negotiators are attempting to reconcile the framework with the General Data Protection Regulation, even though the draft states that the new rules would supplement and supersede earlier bilateral arrangements.

Sensitive information, including political views, trade union membership and biometric identifiers, could be transferred as long as protective conditions are applied.

EU countries face a deadline at the end of 2026 to conclude individual agreements, and failure to do so could result in suspension from the US Visa Waiver Program.

A separate clause keeps disputes firmly outside judicial scrutiny by requiring disagreements to be resolved through a Joint Committee instead of national or international courts.

The draft also restricts onward sharing, obliging US authorities to seek explicit consent before passing European-supplied data to third parties.

Further negotiations are expected, with the European Parliament’s Committee on Civil Liberties, Justice and Home Affairs preparing to hold a closed-door review of the talks.

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MWC 2026 to spotlight SK Telecom’s AI infrastructure vision

SK Telecom will present its end-to-end AI capabilities at MWC 2026, taking place from 2 to 5 March in Barcelona. Under the theme ‘AI for Infinite Possibilities’, the company will highlight AI infrastructure, models, and telecom applications.

The South Korea-based operator will showcase its AI data centre expertise, including infrastructure for a major Ulsan project and a high-performance GPU cluster. Its AI Data Center Infrastructure Manager will demonstrate real-time monitoring across integrated systems.

GPU-as-a-service solutions will also include the Petasus AI Cloud platform, AI Cloud Manager for resource optimisation, and the GAIA monitoring system. SK Telecom will introduce its AI Inference Factory, designed to integrate hardware and software into a unified stack for inference workloads.

In the telecom infrastructure space, the company will outline its AI-native network strategy, spanning embedded AI agents, AI-enabled RAN base stations, and on-device antenna tuning. Integrated sensing and communication technologies will preview autonomous networks and early 6G capabilities.

The booth will also feature SK Telecom’s 519-billion-parameter A.X K1 large language model and open-source variants. Applications for physical AI, including digital twins and robot-training platforms that link virtual and physical environments, will be demonstrated.

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Cloudflare outage causes global internet disruption after an internal error

A major outage on 20 February disrupted global internet traffic after an internal configuration failure at Cloudflare caused the unintended withdrawal of customer BGP routes.

The incident lasted just over six hours and left numerous services unreachable, despite early fears of a cyberattack. An internal update led to the systematic deletion of more than a thousand Bring Your Own IP prefixes, which pushed many connections into BGP path hunting instead of stable routing.

Engineers traced the disruption to an error in the company’s Addressing API, introduced during an automated cleanup task under the Code Orange resilience programme.

A flawed query interpreted an empty value as an instruction to delete all returned prefixes, removing essential bindings for hundreds of customers. Some users restored connectivity through the dashboard, while others required manual reconstruction carried out across the edge network.

An outage that affected a series of core offerings, including content delivery, security layers, dedicated egress and network protection services. Restoration took several hours because the withdrawn prefixes varied in severity, demanding different recovery methods instead of a uniform reinstatement process.

The error triggered widespread timeouts on dependent websites and applications, along with 403 responses on the 1.1.1.1 DNS resolver.

Cloudflare plans to introduce stricter API validation, circuit breakers for abnormal deletion patterns, and improved configuration separation. It has also issued a public apology for a failure that undermined its assurances of network resilience.

An event that reaffirmed the risks posed by internal automation faults when they interact with critical internet infrastructure.

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