Event footage stays on your Intelligence Hub. If you have opted for an external hard disk, 24/7 recording continues on that disk during an outage. Cloud detection, remote alerts and live view from away will not run until the connection comes back. Recordings do not upload as a cloud footage library when the connection returns.
scOS is designed for the real world, where internet connections sometimes fail. You don't lose the Hub archive during an outage — you lose cloud detection and remote access until you're back online.