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Local AI Models: Why 94% of Requests Never Leave the EU

28 January 2026 · Intelego · ⏱ 2 min read
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Local AI: Privacy by Design

Every request to ChatGPT, Copilot, or Gemini leaves the EU. For personal data, trade secrets, and regulated industries, that’s a problem.

IIO’s Approach: AI on Its Own Hardware

Intelego runs its own AI Hub on Hetzner servers in Germany:

MetricValue
Language models available11
Requests on own infrastructure94%
Cost per token€0
Data residencyGermany / EU

Which Models Run Locally?

When Is the Cloud Used?

Only for complex tasks (strategic decisions, legal review) and exclusively after Contextual Data Trust Level B anonymisation.

AI cost analysis for your organisation →

Why Local AI Models Are the Safer Choice

If a language model runs on a US server, US law applies — including the CLOUD Act. That means US authorities could theoretically request access to your company data, even if the data originated in Europe.

Local AI models eliminate this risk entirely.

Which Models Are Suitable?

Recommended for SMEs:

ModelSizeStrengthHardware
Qwen 2.5 7B4.7 GBGeneral purpose, German8 GB VRAM
Llama 3.1 8B4.9 GBReasoning, code8 GB VRAM
Mistral 7B4.1 GBFast, efficient6 GB VRAM
nomic-embed-text0.3 GBEmbeddings/RAGCPU is enough

For more demanding tasks (contract analysis, complex reasoning), 70B models on dedicated GPU servers are the better choice.

IIO AI Hub: Local Models as a Managed Service

IIO operates the AI Hub as multi-tenant GPU infrastructure on Hetzner servers in Germany and Finland. No data leaves the EU.

Pricing model: a fixed monthly amount per GPU cell, no token-based surprise costs.

Get to know the IIO AI Hub → IIO offerings →

Next step: Configure your package or talk to us.

Configurator → Contact