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How are automated Azure subscription deployments expected to work with Y1 quota now defaulting to 0?

Simon Tooley 25 Reputation points
2025-12-18T15:21:42.3033333+00:00

We operate a fully automated Azure deployment pipeline using infrastructure-as-code and template specs. As part of a subscription vending / landing zone model, the pipeline creates a new subscription, resource groups, and all required resources, including Azure Function Apps on the Consumption (Y1) plan.

Since the introduction of quota enforcement, newly created subscriptions start with 0 Y1 quota, causing deployments to fail unless a manual quota request is submitted per subscription. This breaks unattended CI/CD and automation scenarios.

Questions:

How are automated subscription vending and landing zone scenarios expected to function under this quota model?

Is there a supported way to pre-allocate, auto-approve, or inherit Y1 quota for new subscriptions?

Are there recommended alternatives for Consumption-based Azure Functions that preserve full automation without manual quota intervention?

We are looking for official guidance from Microsoft on the intended pattern going forward, as this appears to be a breaking change for subscription-level automation.

Azure Functions
Azure Functions
An Azure service that provides an event-driven serverless compute platform.
Answer accepted by question author
  1. Rakesh Mishra 4,335 Reputation points Microsoft External Staff Moderator
    2025-12-18T17:09:12.5766667+00:00

    Hi @Simon Tooley ,

    Welcome to the Microsoft Q&A Platform! Thank you for asking your question here.

    Please find the response below and please let me know if you have any questions.

    How are automated subscription vending and landing zone scenarios expected to function under this quota model?

    Quotas are a subscription/region construct and are enforced at deployment time — ARM/Bicep/templated deployments will fail with quota errors if the target subscription has insufficient quota. That is the supported behaviour; automation must ensure the subscription has the required quota before provisioning resources that require it. See the quotas overview and ARM quota-error guidance.

    Is there a supported way to pre-allocate, auto-approve, or inherit Y1 quota for new subscriptions?

    Use Quota Groups (if available for the quota type): Microsoft documents Quota Groups / transfer APIs that let you approve quota at a group (management-group) level and then distribute or transfer approved quota into new subscriptions in that group — this is the closest supported pattern to “pre-allocate” or centrally manage quota for many subscriptions. (If Quota Groups are available for the specific Function quota in your tenant, they let you allocate quota to subscriptions without separate per-subscription approval each time.)

    Reference: Transfer quota within an Azure Quota Group

    • Consider Flex Consumption (where available): Microsoft indicates Flex Consumption is the recommended serverless hosting option for many scenarios (it offers different scaling/placement characteristics) — check whether the Flex SKU and quota model fits your automation.
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    • Use Premium or Dedicated (App Service) hosting for function apps: these SKUs don’t rely on the Y1 consumption instance quota and are more predictable for fully automated provisioning (but have different cost/scale characteristics).

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