Hello @PrasannaRamkumar
If you have set up Azure API Management (APIM) in internal mode and tied it to a virtual network (VNET), it will not automatically failover to the second location when the primary goes down. However, you can configure APIM to use a secondary region for disaster recovery purposes You can also use Azure Traffic Manager to route traffic to the secondary region in case of a failover . Also note that the configuration of APIM in internal mode is different from that of external mode.
In internal mode, you can only access the following APIM endpoints within a VNET whose access you control: the API gateway, the developer portal, direct management, and Git. None of the APIM endpoints are registered on the public DNS, and they remain inaccessible until you configure DNS for the VNET.
For more information on how to set up VNET connectivity for your APIM instance in internal mode, please refer to the official Microsoft documentation here.