The cost of traffic between azure tenants in the same region and zone.

Hi Alex Smith

I understand that you need clarification on azure charges for traffic between tenants in the same region.

Azure charges for data transfer between different tenants, even if the resources are located in the same region. This is because:

Each Azure AD tenant is treated as a separate security and billing boundary. When data/traffic moves from one tenant to another (e.g., downloading a restore point from Tenant A to a VM in Tenant B), Azure treats this as egress traffic, similar to data going to the internet or an external network.

Therefore, Standard Data Transfer Out charges apply. However, if the data transfer occurs within the same tenant and same region, Azure does not charge for that traffic.

This is considered intra-region, intra-tenant traffic, which is free.

Please refer this document form more information: https://azure.microsoft.com/en-us/pricing/details/bandwidth/

https://learn.microsoft.com/en-us/azure/cost-management-billing/manage/manage-billing-across-tenants

Here's a quick breakdown of the charges:

• Same region + same tenant: No data transfer charges (intra-tenant traffic).
• Same region + different tenants: Charged as outbound data transfer (egress).

This is because Azure treats cross-tenant traffic as external, regardless of physical proximity.

If you'd like to avoid these charges, consider operations within the same tenant.

Avoid cross-tenant downloads, Perform the restore or snapshot operation within the same tenant.

I hope this information is helpful! If my answer helped you resolve your issue, please consider marking it as the correct answer or Upvote. This helps others in the community find solutions more easily.

Thanks!