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You still need somewhere to store the state; it doesn’t have to be the online Pulumi SaaS however:

<https://www.pulumi.com/docs/intro/concepts/state/>

I suspect (depending on just how air-gapped you are) that the local filesystem backend might be the move:

<https://www.pulumi.com/docs/intro/concepts/state/#logging-into-the-local-filesystem-backend>

I suppose it also matters what you are trying to configure with Pulumi - for example, is it an on-prem k8s cluster, vpshere, etc?