Welcome to Microsoft Q&A
Hello AADRathodVinesh, I hope you are doing well,
Yes, there are specific limitations. While your physical hardware can be located anywhere in the world, the Azure Local control plane (registration metadata) must be connected to one of the supported regions.
According to the official requirements, you must register your Azure Local instance to one of the following Public Azure Regions: Support by regions
East US
West Europe
Australia East
Southeast Asia
India Central
Canada Central
Japan East
South Central US
Key Architectural Note: This region selection dictates where the metadata and billing information reside. It does not force your data traffic to flow through that region, nor does it restrict where you physically place your servers. You should select the supported region that is geographically closest to your physical site to minimize management latency.
😊 If my answer helped you resolve your issue, please consider marking it as the correct answer. This helps others in the community find solutions more easily. Thanks!