Where does the DLR process run?

I have three(3) clusters and three(3) vDS's.  One(1) vDS per cluster.

Customer Cluster = Customer vDS

Internal Cluster = Internal vDS

Edge Cluster = Edge Cluster vDS

VXLAN runs on VLAN 2000 and is present on all clusters.  One(1) Transport Zone for all clusters.

I deploy a DLR for an Internal customer.  On which ESXi hosts is the DLR kernel process running? 

  All ESXi hosts?

  Only the ESXi hosts where the LIF is present?

  Only the internal customer cluster?

I think it's where the LIF is present but can't find supporting documentation.