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Enable Microsoft Entra Domain Services using PowerShell

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Microsoft Entra Domain Services provides managed domain services such as domain join, group policy, LDAP, Kerberos/NTLM authentication that is fully compatible with Windows Server Active Directory. You consume these domain services without deploying, managing, and patching domain controllers yourself. Domain Services integrates with your existing Microsoft Entra tenant. This integration lets users sign in using their corporate credentials, and you can use existing groups and user accounts to secure access to resources.

This article shows you how to enable Domain Services using PowerShell.

Note

We recommend that you use the Azure Az PowerShell module to interact with Azure. See Install Azure PowerShell to get started. To learn how to migrate to the Az PowerShell module, see Migrate Azure PowerShell from AzureRM to Az.

Prerequisites

To complete this article, you need the following resources:

Create required Microsoft Entra resources

Domain Services requires a service principal to authenticate and communicate and a Microsoft Entra group to define which users have administrative permissions in the managed domain.

First, create a Microsoft Entra service principal by using a specific application ID named Domain Controller Services. The ID value is 2565bd9d-da50-47d4-8b85-4c97f669dc36 for global Azure and 6ba9a5d4-8456-4118-b521-9c5ca10cdf84 for other Azure clouds. Don't change this application ID.

Create a Microsoft Entra service principal using the New-MgServicePrincipal cmdlet:

New-MgServicePrincipal -AppId "2565bd9d-da50-47d4-8b85-4c97f669dc36"

Now create a Microsoft Entra group named AAD DC Administrators. Users added to this group are then granted permissions to perform administration tasks on the managed domain.

First, get the AAD DC Administrators group object ID using the Get-MgGroup cmdlet. If the group doesn't exist, create it with the AAD DC Administrators group using the New-MgGroup cmdlet:

# First, retrieve the object ID of the 'AAD DC Administrators' group.
$GroupObject = Get-MgGroup `
  -Filter "DisplayName eq 'AAD DC Administrators'"

# If the group doesn't exist, create it
if (!$GroupObject) {
  $GroupObject = New-MgGroup -DisplayName "AAD DC Administrators" `
    -Description "Delegated group to administer Microsoft Entra Domain Services" `
    -SecurityEnabled:$true `
    -MailEnabled:$false `
    -MailNickName "AADDCAdministrators"
  } else {
  Write-Output "Admin group already exists."
}

With the AAD DC Administrators group created, get the desired user's object ID using the Get-MgUser cmdlet, then add the user to the group using the New-MgGroupMemberByRef cmdlet.

In the following example, the user object ID for the account with a UPN of admin@contoso.onmicrosoft.com. Replace this user account with the UPN of the user you wish to add to the AAD DC Administrators group:

# Retrieve the object ID of the user you'd like to add to the group.
$UserObjectId = Get-MgUser `
  -Filter "UserPrincipalName eq 'admin@contoso.onmicrosoft.com'" | `
  Select-Object Id

# Add the user to the 'AAD DC Administrators' group.
New-MgGroupMember -GroupId $GroupObject.Id -DirectoryObjectId $UserObjectId.Id

Create network resources

First, register the Microsoft Entra Domain Services resource provider using the Register-AzResourceProvider cmdlet:

Register-AzResourceProvider -ProviderNamespace Microsoft.AAD

Next, create a resource group using the New-AzResourceGroup cmdlet. In the following example, the resource group is named myResourceGroup and is created in the westus region. Use your own name and desired region:

$ResourceGroupName = "myResourceGroup"
$AzureLocation = "westus"

# Create the resource group.
New-AzResourceGroup `
  -Name $ResourceGroupName `
  -Location $AzureLocation

Create the virtual network and subnets for Microsoft Entra Domain Services. Two subnets are created - one for DomainServices, and one for Workloads. Domain Services is deployed into the dedicated DomainServices subnet. Don't deploy other applications or workloads into this subnet. Use the separate Workloads or other subnets for the rest of your VMs.

Create the subnets using the New-AzVirtualNetworkSubnetConfig cmdlet, then create the virtual network using the New-AzVirtualNetwork cmdlet.

$VnetName = "myVnet"

# Create the dedicated subnet for Microsoft Entra Domain Services.
$SubnetName = "DomainServices"
$AaddsSubnet = New-AzVirtualNetworkSubnetConfig `
  -Name $SubnetName `
  -AddressPrefix 10.0.0.0/24

# Create an additional subnet for your own VM workloads
$WorkloadSubnet = New-AzVirtualNetworkSubnetConfig `
  -Name Workloads `
  -AddressPrefix 10.0.1.0/24

# Create the virtual network in which you will enable Microsoft Entra Domain Services.
$Vnet= New-AzVirtualNetwork `
  -ResourceGroupName $ResourceGroupName `
  -Location westus `
  -Name $VnetName `
  -AddressPrefix 10.0.0.0/16 `
  -Subnet $AaddsSubnet,$WorkloadSubnet

Create a network security group

Domain Services needs a network security group to secure the ports needed for the managed domain and block all other incoming traffic. A network security group (NSG) contains a list of rules that allow or deny network traffic to traffic in an Azure virtual network. In Domain Services, the network security group acts as an extra layer of protection to lock down access to the managed domain. To view the ports required, see Network security groups and required ports.

The following PowerShell cmdlets use New-AzNetworkSecurityRuleConfig to create the rules, then New-AzNetworkSecurityGroup to create the network security group. The network security group and rules are then associated with the virtual network subnet using the Set-AzVirtualNetworkSubnetConfig cmdlet.

$NSGName = "dsNSG"

# Create a rule to allow inbound TCP port 3389 traffic from Microsoft secure access workstations for troubleshooting
$nsg201 = New-AzNetworkSecurityRuleConfig -Name AllowRD `
    -Access Allow `
    -Protocol Tcp `
    -Direction Inbound `
    -Priority 201 `
    -SourceAddressPrefix CorpNetSaw `
    -SourcePortRange * `
    -DestinationAddressPrefix * `
    -DestinationPortRange 3389

# Create a rule to allow TCP port 5986 traffic for PowerShell remote management
$nsg301 = New-AzNetworkSecurityRuleConfig -Name AllowPSRemoting `
    -Access Allow `
    -Protocol Tcp `
    -Direction Inbound `
    -Priority 301 `
    -SourceAddressPrefix AzureActiveDirectoryDomainServices `
    -SourcePortRange * `
    -DestinationAddressPrefix * `
    -DestinationPortRange 5986

# Create the network security group and rules
$nsg = New-AzNetworkSecurityGroup -Name $NSGName `
    -ResourceGroupName $ResourceGroupName `
    -Location $AzureLocation `
    -SecurityRules $nsg201,$nsg301

# Get the existing virtual network resource objects and information
$vnet = Get-AzVirtualNetwork -Name $VnetName -ResourceGroupName $ResourceGroupName
$subnet = Get-AzVirtualNetworkSubnetConfig -VirtualNetwork $vnet -Name $SubnetName
$addressPrefix = $subnet.AddressPrefix

# Associate the network security group with the virtual network subnet
Set-AzVirtualNetworkSubnetConfig -Name $SubnetName `
    -VirtualNetwork $vnet `
    -AddressPrefix $addressPrefix `
    -NetworkSecurityGroup $nsg
$vnet | Set-AzVirtualNetwork

Create a managed domain

Now let's create a managed domain. Set your Azure subscription ID, and then provide a name for the managed domain, such as dscontoso.com. You can get your subscription ID using the Get-AzSubscription cmdlet.

If you choose a region that supports Availability Zones, the Domain Services resources are distributed across zones for redundancy.

Availability Zones are unique physical locations within an Azure region. Each zone is made up of one or more datacenters equipped with independent power, cooling, and networking. To ensure resiliency, there's a minimum of three separate zones in all enabled regions.

There's nothing for you to configure for Domain Services to be distributed across zones. The Azure platform automatically handles the zone distribution of resources. For more information and to see region availability, see What are Availability Zones in Azure?.

$AzureSubscriptionId = "YOUR_AZURE_SUBSCRIPTION_ID"
$ManagedDomainName = "dscontoso.com"

# Enable Microsoft Entra Domain Services for the directory.
$replicaSetParams = @{
  Location = $AzureLocation
  SubnetId = "/subscriptions/$AzureSubscriptionId/resourceGroups/$ResourceGroupName/providers/Microsoft.Network/virtualNetworks/$VnetName/subnets/DomainServices"
}
$replicaSet = New-AzADDomainServiceReplicaSetObject @replicaSetParams

$domainServiceParams = @{
  Name = $ManagedDomainName
  ResourceGroupName = $ResourceGroupName
  DomainName = $ManagedDomainName
  ReplicaSet = $replicaSet
}
New-AzADDomainService @domainServiceParams

It takes a few minutes to create the resource and return control to the PowerShell prompt. The managed domain continues to be provisioned in the background, and can take up to an hour to complete the deployment. In the Microsoft Entra admin center, the Overview page for your managed domain shows the current status throughout this deployment stage.

When the Microsoft Entra admin center shows that the managed domain has finished provisioning, the following tasks need to be completed:

  • Update DNS settings for the virtual network so virtual machines can find the managed domain for domain join or authentication.
    • To configure DNS, select your managed domain in the portal. On the Overview window, you are prompted to automatically configure these DNS settings.
  • Enable password synchronization to Domain Services so end users can sign in to the managed domain using their corporate credentials.

Complete PowerShell script

The following complete PowerShell script combines all of the tasks shown in this article. Copy the script and save it to a file with a .ps1 extension. For Azure Global, use AppId value 2565bd9d-da50-47d4-8b85-4c97f669dc36. For other Azure clouds, use AppId value 6ba9a5d4-8456-4118-b521-9c5ca10cdf84. Run the script in a local PowerShell console or the Azure Cloud Shell.

A Global Administrator is needed to manage this feature.

Contributor privileges for the Azure subscription are required for this feature.

# Change the following values to match your deployment.
$AaddsAdminUserUpn = "admin@contoso.onmicrosoft.com"
$ResourceGroupName = "myResourceGroup"
$VnetName = "myVnet"
$AzureLocation = "westus"
$AzureSubscriptionId = "YOUR_AZURE_SUBSCRIPTION_ID"
$ManagedDomainName = "dscontoso.com"

# Connect to your Microsoft Entra directory.
Connect-MgGraph -Scopes "Application.ReadWrite.All","Directory.ReadWrite.All"

# Login to your Azure subscription.
Connect-AzAccount

# Create the service principal for Microsoft Entra Domain Services.
New-MgServicePrincipal -AppId "2565bd9d-da50-47d4-8b85-4c97f669dc36"

# First, retrieve the object of the 'AAD DC Administrators' group.
$GroupObject = Get-MgGroup `
  -Filter "DisplayName eq 'AAD DC Administrators'"

# Create the delegated administration group for Microsoft Entra Domain Services if it doesn't already exist.
if (!$GroupObject) {
  $GroupObject = New-MgGroup -DisplayName "AAD DC Administrators" `
    -Description "Delegated group to administer Microsoft Entra Domain Services" `
    -SecurityEnabled:$true `
    -MailEnabled:$false `
    -MailNickName "AADDCAdministrators"
  } else {
  Write-Output "Admin group already exists."
}

# Now, retrieve the object ID of the user you'd like to add to the group.
$UserObjectId = Get-MgUser `
  -Filter "UserPrincipalName eq '$AaddsAdminUserUpn'" | `
  Select-Object Id

# Add the user to the 'AAD DC Administrators' group.
New-MgGroupMember -GroupId $GroupObject.Id -DirectoryObjectId $UserObjectId.Id

# Register the resource provider for Microsoft Entra Domain Services with Resource Manager.
Register-AzResourceProvider -ProviderNamespace Microsoft.AAD

# Create the resource group.
New-AzResourceGroup `
  -Name $ResourceGroupName `
  -Location $AzureLocation

# Create the dedicated subnet for Microsoft Entra Domain Services.
$SubnetName = "DomainServices"
$AaddsSubnet = New-AzVirtualNetworkSubnetConfig `
  -Name DomainServices `
  -AddressPrefix 10.0.0.0/24

$WorkloadSubnet = New-AzVirtualNetworkSubnetConfig `
  -Name Workloads `
  -AddressPrefix 10.0.1.0/24

# Create the virtual network in which you will enable Microsoft Entra Domain Services.
$Vnet=New-AzVirtualNetwork `
  -ResourceGroupName $ResourceGroupName `
  -Location $AzureLocation `
  -Name $VnetName `
  -AddressPrefix 10.0.0.0/16 `
  -Subnet $AaddsSubnet,$WorkloadSubnet

$NSGName = "dsNSG"

# Create a rule to allow inbound TCP port 3389 traffic from Microsoft secure access workstations for troubleshooting
$nsg201 = New-AzNetworkSecurityRuleConfig -Name AllowRD `
    -Access Allow `
    -Protocol Tcp `
    -Direction Inbound `
    -Priority 201 `
    -SourceAddressPrefix CorpNetSaw `
    -SourcePortRange * `
    -DestinationAddressPrefix * `
    -DestinationPortRange 3389

# Create a rule to allow TCP port 5986 traffic for PowerShell remote management
$nsg301 = New-AzNetworkSecurityRuleConfig -Name AllowPSRemoting `
    -Access Allow `
    -Protocol Tcp `
    -Direction Inbound `
    -Priority 301 `
    -SourceAddressPrefix AzureActiveDirectoryDomainServices `
    -SourcePortRange * `
    -DestinationAddressPrefix * `
    -DestinationPortRange 5986

# Create the network security group and rules
$nsg = New-AzNetworkSecurityGroup -Name $NSGName `
    -ResourceGroupName $ResourceGroupName `
    -Location $AzureLocation `
    -SecurityRules $nsg201,$nsg301

# Get the existing virtual network resource objects and information
$vnet = Get-AzVirtualNetwork -Name $VnetName -ResourceGroupName $ResourceGroupName
$subnet = Get-AzVirtualNetworkSubnetConfig -VirtualNetwork $vnet -Name $SubnetName
$addressPrefix = $subnet.AddressPrefix

# Associate the network security group with the virtual network subnet
Set-AzVirtualNetworkSubnetConfig -Name $SubnetName `
    -VirtualNetwork $vnet `
    -AddressPrefix $addressPrefix `
    -NetworkSecurityGroup $nsg
$vnet | Set-AzVirtualNetwork

# Enable Microsoft Entra Domain Services for the directory.
$replicaSetParams = @{
  Location = $AzureLocation
  SubnetId = "/subscriptions/$AzureSubscriptionId/resourceGroups/$ResourceGroupName/providers/Microsoft.Network/virtualNetworks/$VnetName/subnets/DomainServices"
}
$replicaSet = New-AzADDomainServiceReplicaSet @replicaSetParams

$domainServiceParams = @{
  Name = $ManagedDomainName
  ResourceGroupName = $ResourceGroupName
  DomainName = $ManagedDomainName
  ReplicaSet = $replicaSet
}
New-AzADDomainService @domainServiceParams

It takes a few minutes to create the resource and return control to the PowerShell prompt. The managed domain continues to be provisioned in the background, and can take up to an hour to complete the deployment. In the Microsoft Entra admin center, the Overview page for your managed domain shows the current status throughout this deployment stage.

When the Microsoft Entra admin center shows that the managed domain has finished provisioning, the following tasks need to be completed:

  • Update DNS settings for the virtual network so virtual machines can find the managed domain for domain join or authentication.
    • To configure DNS, select your managed domain in the portal. On the Overview window, you are prompted to automatically configure these DNS settings.
  • Enable password synchronization to Domain Services so end users can sign in to the managed domain using their corporate credentials.

Next steps

To see the managed domain in action, you can domain-join a Windows VM, configure secure LDAP, and configure password hash sync.