Welcome to the Microsoft Q&A Platform. Thank you for reaching out & I hope you are doing well.
I understand that you would like to know if we can deploy a server(VM) in Azure to provide DHCP for OnPrem machines.
This should be doable. See : Deploy a DHCP server in Azure on a virtual machine
Provided that this server is used as a target for an on-premises DHCP relay agent to provide DHCP.
This server is used as a target for an on-premises DHCP relay agent to provide dynamic IP address allocation to on-premises clients. Broadcast packets directly from clients to a DHCP Server don't work in an Azure Virtual Network by design.
More details on what is supported and what is not is given in : Can I deploy a DHCP server in a virtual network?
- The distinction is that you cannot run a DHCP in Azure to provide dynamic IP address allocation to Azure VMs
- However, by using a Relay agent in OnPrem, you should be able to provide dynamic IP address allocation to OnPrem servers.
Hope this helps.
Cheers,
Kapil