Unable to create any Azure Virtual Machine in any region with a new Azure subscription

shanmukha tadisetti 40 Reputation points
2026-07-28T14:10:36.1666667+00:00

I created a new Azure subscription yesterday. My subscription is enabled, and I have approximately ₹18,878.75 in Azure credits available.

I can successfully create resource groups, and I have confirmed that the following resource providers are registered:

Microsoft.Compute

Microsoft.Network

Microsoft.Storage

However, I cannot create any Virtual Machine from either the Azure Portal or the Azure CLI.

I have tested:

Ubuntu Server 24.04 LTS

Regions: East US, North Europe, West Europe, and UK South

The deployments consistently fail with errors such as:

SkuNotAvailable

RequestDisallowedByAzure (locationineligible): "The selected region is currently not accepting new customers."

Azure Diagnostics also reports: "Resource 'testvmVNET' was disallowed by Azure: The selected region is currently not accepting new customers."

I have already:

Verified that my subscription is Enabled.

Confirmed I am the Owner of the subscription.

Registered Microsoft.Compute, Microsoft.Network, and Microsoft.Storage.

Tried both the Azure Portal and Azure CLI.

Tried multiple VM sizes and multiple regions.

Could someone please help determine whether there is a restriction or provisioning issue on my subscription that is preventing Virtual Machine deployments?

Azure Virtual Machines
Azure Virtual Machines

An Azure service that is used to provision Windows and Linux virtual machines.

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Answer accepted by question author

Sina Salam 31,056 Reputation points Volunteer Moderator
2026-07-28T15:43:20.92+00:00

Hello shanmukha tadisetti,

Welcome to the Microsoft Q&A and thank you for posting your questions here.

I understand that you are unable to create any Azure Virtual Machine in any region with a new Azure subscription.

The deployment is failing because the subscription is blocked by Azure regional access eligibility and/or VM SKU availability/quota restrictions.

The locationineligible error means the selected Azure region is not currently accepting new customers for that tenant or subscription. The SkuNotAvailable error means the selected VM size is not available for that subscription in the selected region or availability zone.

To fix this you will need to check an allowed region and your available VM SKU first, then deploy there. If the required region or SKU is still blocked, the issue must be resolved through Azure region access or Compute quota/SKU enablement because it is controlled at Azure subscription/backend eligibility level. - https://learn.microsoft.com/en-us/azure/azure-resource-manager/troubleshooting/error-region-access-policy, https://learn.microsoft.com/en-us/azure/azure-resource-manager/troubleshooting/error-sku-not-available

What you need to do is to:

  • Stop retrying the blocked region, especially where locationineligible is returned.
  • Use Azure CLI to identify VM SKUs that are actually available to the subscription.
  • Check regional and VM-family vCPU quota before retrying deployment.
  • Deploy using only a confirmed available region and VM size.
  • If no required region/SKU is available, open Azure Support for region access, SKU availability, or quota enablement via your Azure Portal or contact Priority Customer Service.

I hope this is helpful. Please! Do not hesitate to let me know if you have any other questions, steps or clarifications.

Please do not close the thread by upvoting and accepting the answer if any part of it is helpful.

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Answer accepted by question author

TP 160.9K Reputation points Volunteer Moderator
2026-07-28T14:45:54.73+00:00

Hi,

Due to capacity issues some subscriptions are restricted from creating resources in certain regions and/or are restricted from creating certain high-demand VM sizes in certain regions (especially most popular regions like the ones you mentioned). Azure Free Trial subscriptions are more limited compared to paid subscription types, although even paid subscriptions are limited too.

What I would suggest is to try deploying to less popular regions and different, more current VM generations. For example, please navigate to your Quotas in the portal, using link below:

https://portal.azure.com/#view/Microsoft_Azure_Capacity/QuotaMenuBlade/~/overview

Click on Compute, wait for list to populate, click on Region filter at top, de-select All, then select West US 3, click Apply. Wait several seconds for the list to populate. In the search box, enter standard dad

In the list below, check if you have quota for "Standard Dadsv7 Family vCPUs" or "standard Dadv6 Family vCPUs". If yes, try creating a Standard_D2ads_v6 or Standard_D2ads_v7 VM in West US 3.

Additionally, repeat same with other VM families and regions such as Ev6 or Ev7. Where possible test with v5 or higher generation VMs, checking if you have available quota for the family in the region first.

If you have any questions please add a comment below.

Please click Accept Answer and upvote if the above was helpful.

Thanks.

-TP

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  1. AI answer

    2026-07-28T14:11:02.6966667+00:00

    Two different Azure restrictions are indicated by the errors:

    1. SkuNotAvailable
      • The requested VM size is not available for that subscription in the selected region or zone.
      • This can happen from Azure portal, Azure CLI, ARM templates, or Bicep deployments.
      • In Activity Log, this commonly appears as SkuNotAvailable or InvalidTemplateDeployment.
    2. RequestDisallowedByAzure / locationineligible
      • This means the selected region is currently not accepting new customers.
      • Microsoft can restrict access for customers without existing resources in a location. The documented example in the context is West Europe.

    Based on the symptoms, this is not caused by unregistered resource providers, because Microsoft.Compute, Microsoft.Network, and Microsoft.Storage are already registered.

    Use this troubleshooting path:

    1. Check the exact failure in Azure Portal > Activity log.
      • If the error is SkuNotAvailable, switch to a different VM size or a different region.
      • If the error is RequestDisallowedByAzure or the message says the region is not accepting new customers, that region cannot currently be used for new deployments on that subscription.
    2. For SkuNotAvailable, retry with:
      • a different VM size in the same region, or
      • the same VM size in a different region.
    3. If the target region returns the location-ineligible message, do not keep retrying the same region.
      • That is a regional access restriction, not a local deployment configuration issue.
    4. If multiple regions fail because of regional restriction or policy-based disallow, review allowed deployment regions in Azure Policy assignments if that subscription type applies a region policy.
      • In Azure portal, go to Azure Policy > Authoring > Assignments.
      • Open the assignment for allowed locations or allowed resource deployment regions.
      • Check the Parameter value list and deploy only to one of those regions.
    5. If all tested regions are blocked and no allowed region works, create a Microsoft support request.
      • The documented guidance for region-restricted scenarios is to contact support when additional or different regions are needed.

    For the specific regions mentioned:

    • West Europe is explicitly documented as a region where the location-ineligible policy is currently in effect.
    • A SkuNotAvailable result in East US, North Europe, or UK South means the chosen VM size is unavailable there for the subscription, so a different size or region is required.

    In short: the subscription itself is enabled, but VM deployment is being blocked by region eligibility restrictions and/or SKU availability in the selected regions. The next actionable checks are Activity Log for the exact code, Azure Policy allowed locations, then deployment to an allowed region with an available VM size, and finally a support request if no allowed region succeeds.

    References:

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