# LocalCloud vs hosted agent sandboxes

> Compare LocalCloud with hosted code sandboxes such as E2B for agent workflows: where each one fits, and why many agent setups use both.
>
> Source: https://local.cloud/compare/e2b-vercel-sandboxes/

Comparison

E2B and Vercel Sandbox isolate arbitrary code execution for agents. LocalCloud replaces Google Cloud API calls with localhost emulators for the non-production work its license permits. The products address different boundaries.

[Read docs](https://local.cloud/docs/) [Check compatibility](https://local.cloud/compatibility/) [SDK examples](https://local.cloud/docs/sdk-examples/)

Fact

E2B and Vercel focus on isolated code execution environments.

Fact

LocalCloud focuses on local Google Cloud APIs and SDK endpoints.

Fact

A hosted sandbox may still need LocalCloud or real GCP to exercise GCP-specific behavior.

Where hosted sandboxes are better

## Use E2B or Vercel when the risk is arbitrary code execution

If the primary problem is running untrusted generated code away from your workstation or production systems, hosted sandboxes are purpose-built for that execution boundary.

Where LocalCloud is better

## Use LocalCloud when the risk is accidental cloud side effects

If the agent is writing BigQuery, Pub/Sub, Storage, or Terraform code, LocalCloud gives the code a local GCP-like API target with no default cloud account or billing project.

Copy-ready setup

## Commands and prompts

### Copy a prompt for your coding agent

#### Start LocalCloud

Give an agent one URL and have it start the local GCP sandbox.

```
Fetch https://local.cloud/ai/agents.md and follow the instructions to start LocalCloud on my machine. Install the LocalCloud CLI if it is missing, verify Docker, start or reuse LocalCloud, export emulator environment variables, and run one local GCP SDK/API smoke check. Do not ask for or use real GCP credentials.
```

#### Configure this repo

Have an agent wire an existing project to LocalCloud safely.

```
Set up this repository to use LocalCloud for local GCP development. First read https://local.cloud/ai/agents.md, then inspect this repo, identify the GCP services and SDK language, configure emulator environment variables, and run the narrowest integration test against localhost. Do not use real GCP credentials or production endpoints.
```

Compatibility

## Local check versus release validation

| Need | Hosted code sandbox | LocalCloud |
| --- | --- | --- |
| Run arbitrary generated code | Primary use case. | Not the isolation layer for arbitrary shell risk. |
| Exercise GCP SDK calls | Needs external target or real cloud. | Primary use case through localhost endpoints. |
| Avoid GCP credentials by default | Depends on what the sandboxed code calls. | Default LocalCloud workflows need no GCP credentials. |

Production boundary

## Before production

Use LocalCloud for non-production development, testing, and CI under the [Public Preview License](https://local.cloud/license/), check [each service's local boundaries](https://local.cloud/compatibility/), and validate against real Google Cloud before you deploy.

- LocalCloud does not replace a hosted code-execution sandbox for untrusted shell workloads.

Related

## Next steps

- [Agent pages](https://local.cloud/agents/) — Use LocalCloud with terminal and IDE agents.

Sources and review

## Claims are tied to current sources

- [E2B documentation](https://www.e2b.dev/docs) — E2B describes isolated sandboxes for agents to execute code.
- [Vercel Sandbox docs](https://vercel.com/docs/sandbox) — Vercel describes isolated ephemeral Linux VMs for agent and code workloads.
- LocalCloud agentic facts reviewed 2026-10-20.