Which AWS service meets this requirement?

Explanations:

AWS Outposts allows you to run AWS services on-premises while integrating with your existing on-premises infrastructure and providing low-latency access to your company’s VPC. It is designed specifically for workloads that require local data processing and storage, making it the best fit for this requirement.

AWS Storage Gateway is primarily a hybrid cloud storage service that enables on-premises applications to use cloud storage. It is not designed to run AWS services on-premises or directly support workload execution like Outposts does.

AWS Direct Connect is a networking service that provides a dedicated connection from on-premises to AWS. While it facilitates data transfer, it does not provide on-premises computing capabilities or storage, which is required in this scenario.

AWS Snowball is a data transport solution that helps to transfer large amounts of data to and from AWS. It is not a service designed to run applications on-premises or provide ongoing data processing capabilities.