An Azure relational database service.
Hi @nikhil.b
Thank you for reaching microsoft Q&A!
Based on the error message, this is typically caused by regional capacity restrictions for your subscription. As an initial troubleshooting step, I recommend trying to create the SQL Server in a different Azure region to verify whether the issue is specific to the selected region.
If the server can be created successfully in another region, it would indicate that the original region is currently restricted for your subscription due to capacity or availability constraints.
If you must deploy in the same region and the issue persists, please let us know. We can then help determine whether a support request is required to review the regional restriction and request access, if applicable.