How to enable connection witrh ms entra id using ssms and azure sql db

Hi @Comfort Olorunlero

As discussed, you are currently unable to deploy the Azure SQL Database.

In some regions, Azure SQL Database deployments can fail due to temporary capacity constraints for your subscription, which may result in provisioning failures.

To proceed, please try the following:

• Try deploying in a different region (for example: West US, East US 2, etc.)
• Try a different pricing tier/SKU
• Retry the deployment after some time

If the issue persists, you can raise a support request for capacity/quota:

1. Go to: https://portal.azure.com/#create/Microsoft.Support
2. Select Service and subscription limits (quotas)
3. Choose SQL Database / vCore quota or region access
4. Provide the region and deployment details

Hi Comfort Olorunlero,

The issue appears to be related to how Microsoft Entra ID authentication and Managed Identity work with Azure SQL Database and SQL Server Management Studio.

Managed Identity is primarily designed for application-based authentication. It is not supported for interactive login from SSMS on a local machine.

It can be used with SSMS only when SSMS is running on an Azure resource (such as an Azure VM) that has the managed identity assigned.

For standard desktop connections, please use Microsoft Entra authentication methods such as Universal with MFA or other supported Entra login options. Documentation: https://learn.microsoft.com/en-us/azure/azure-sql/database/connect-query-ssms

Additionally, Microsoft Entra authentication requires that a Microsoft Entra admin is configured on the Azure SQL logical server. Without this, Entra-based authentication will fail. Documentation: https://learn.microsoft.com/en-us/azure/azure-sql/database/authentication-aad-configure

If you are using Managed Identity for application access, the identity must be created inside the database using: CREATE USER [<managed-identity-name>] FROM EXTERNAL PROVIDER; and then granted the required roles.

Regarding the database creation failure, this is a permissions-related behavior. In Azure SQL Database, only the server admin, Microsoft Entra admin, or a user assigned the dbmanager role in the master database can create databases. Documentation: https://learn.microsoft.com/en-us/azure/azure-sql/database/single-database-create-quickstart

The issue is likely due to using Managed Identity in an unsupported SSMS context (local machine), missing Entra admin configuration, or insufficient permissions for database creation.

To proceed, could you confirm:

Whether you are connecting from a local machine or Azure VM
Whether an Entra admin is configured
The exact error message observed

Hope this helps, Please let us know if you have any questions or concerns.