The execution boundary
Cursor’s cloud agents will now run on your infrastructure instead of its own
Cursor shipped self-hosted machines for cloud agents on 2 September. Its changelog lists AWS Lambda, Coder, Cloudflare, Daytona, Modal, Namespace, Vercel and E2B as execution targets, configured through My Machines or Team pools.
This removes the single objection that kept regulated teams off hosted coding agents.
The agent process, its filesystem and its network egress run inside an account you own, so the code it reads never crosses your boundary and your existing logging sees what it did. Cursor says idle capacity hibernates automatically and that Linux and Mac computer use runs on self-hosted workers too.
The prompt still leaves, because the model call does not run on your machines, and Cursor does not claim otherwise.
What it changes If data residency was the blocker on hosted coding agents, re-open that decision. Note what the change does not cover: execution moves inside, inference does not.
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