Will it be clear where the model is located from a data region point of view in terms of being compliant with local data and privacy laws?

It will be compliant with Microsoft’s data residency and various regional commitments. Your data is not leaving your compliance boundaries, and you will maintain control of your data throughout the entire experience. You, as a client, are always in control of your data, and Microsoft will continue to meet its regional requirements. Data will always follow your organisation’s retention and query policies.