This document is a technical report that outlines the concept and operational framework of a Neutral AI Factory, designed for AI workloads. It describes the three major stages of operation: data acquisition, data ingestion for AI model training, and generating intelligence inferences. The report emphasizes the significance of building an AI Factory for telecommunications and data center operators, highlighting the advantages of supporting sovereign AI through strong data residency controls. It also discusses the challenges faced by AI Factory builders, including the need for substantial capital investment in high-performance computing infrastructure and the importance of ensuring a high return on investment. The report details how Managed Service Providers (MSPs) can leverage the Neutral AI Factory model to deliver AI-as-a-Service while addressing the requirements of various enterprise verticals. Additionally, it presents the critical challenges in operating a Neutral AI Factory at scale, such as multi-tenancy, heterogeneous workloads, and efficient workload placement, and how Zadara's cloud platform facilitates these operations.