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Azure SQL logical server create/update stuck: Microsoft.Sql/servers/write failing repeatedly with InternalServerError (HTTP 500) in uksouth

Ayush Gupta 25 Reputation points
2026-04-15T08:39:20.6733333+00:00

Hi team, I am blocked on Azure SQL server provisioning and need guidance.

I am deploying with Terraform, and Azure SQL logical server create/update keeps failing in a loop. In Activity Log, I continuously see:

  • Update SQL server -> Started
  • Update SQL server -> Failed
  • Substatus: InternalServerError (HTTP 500)

This repeats roughly every 1 minute for the same resource operation.

Environment / Scope

  • Subscription: 7609850d-c05f-4501-a907-624ff9b0a4b3
  • Resource Group: rg-aos-cloudoberry-03
  • Region: uksouth
  • Resource type: Microsoft.Sql/servers
  • SQL server attempted: cloudoberryaos123456789
  • Caller SP object ID: e400cb07-****-****-****-**********d9
  • Caller app/client ID: df0b173f-****-****-****-**********f6

Error details

  • Operation: Microsoft.Sql/servers/write
  • Correlation ID: 8a31a608-4c44-a91e-0d59-a94f6f873e6d
  • Tracking ID: cd210f7e-670d-46e5-a548-f5c505ea13c7
  • Status message: An unexpected error occured while processing the request.

What I already tried

  • Multiple retries of Terraform plan/apply
  • Changed SQL server names to fresh unique names
  • Verified RBAC permissions
  • Checked policy events (only audit, all succeeded; no deny/block)

Question Has anyone seen this SQL Resource Provider control-plane behavior recently in uksouth? Any practical workaround (other than paid support ticket), e.g. region switch or specific retry strategy, that reliably unblocks deployment?Hi team, I am blocked on Azure SQL server provisioning and need guidance.

Azure SQL Database

Answer accepted by question author

  1. Saraswathi Devadula 16,020 Reputation points Microsoft External Staff Moderator
    2026-04-16T06:57:55.23+00:00

    Hello Ayush Gupta

    The incident was caused by a recent code change related to a new feature for Azure SQL logical server ARM hydration. A feature switch was not fully handled in the codebase for certain API versions, leading to intermittent internal server errors (HTTP 500) during logical server create and update operations. This bug caused failures specifically on one API version and was not detected in pre-production due to insufficient monitoring and the intermittent nature of the failures. The issue affected multiple regions and subscriptions until the problematic deployment was rolled back.

    In further analysis, our engineering team mitigated the issue for your UKsouth region.

    Hope this helps. Do let us know if you any further queries.

    If this answers your query, do click Accept Answer and Yes for was this answer helpful. And, if you have any further query do let us know.

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  1. Q&A Assist
    2026-04-15T08:39:39.69+00:00
    AI generated content. This question contains an answer created with AI from Q&A Assist. Learn more

    The behavior described matches a region‑specific limitation or backend issue on the Azure SQL resource provider side rather than a Terraform or RBAC problem.

    From the documented behavior for Azure SQL capacity and region enablement:

    • A subscription might not have access to create a server in a specific region, or provisioning might be restricted in that region.
    • When this happens, deployments can fail even though permissions and configuration look correct.
    • The documented guidance is to either:
      • Switch to a different region where provisioning succeeds, or
      • Open a support request to enable or unblock the region for the subscription.

    In a similar case, a deployment that kept failing with obscure errors was resolved by switching the deployment to another region; there was no clear indication of the regional restriction in the error message itself.

    Given that:

    1. Terraform retries and name changes did not help.
    2. RBAC and policy checks are clean.
    3. The error is a repeated InternalServerError (HTTP 500) on Microsoft.Sql/servers/write in a specific region (uksouth).

    The practical workarounds supported by the documentation are:

    1. Try a different region for the Azure SQL logical server (for example, another nearby region) and redeploy the same Terraform configuration there. This is explicitly called out as a viable path when a region is restricted or at capacity.
    2. If the deployment must stay in uksouth, open a support request to enable or unblock Azure SQL server creation in that region for the subscription. The documented path is to file a support request under “Service and subscription limits” / region enablement for Azure SQL.

    There is no documented retry strategy that will overcome a backend 500 caused by regional restriction or capacity; the supported options are region switch or a support request to adjust the subscription’s access to that region.

    References:

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