“Unfortunately, due to high demand for virtual machines in this region, we are not able to approve your quota request at this time. We are continuing to expedite additional capacity for the US East 2 (EUS2).”
This has reportedly been an issue for over a week, with some users instructed to deploy to US West servers or request a smaller number of cores. Meanwhile, Reddit user BloinkXP said his company had been whitelisted, but Microsoft's response was “we aren't sure how we got here”.
Some paying customers are indicating that being forced to deploy in a different region isn't good enough. Unfortunately, VM it can take months for a provider like Microsoft to get more hardware up and running in its data centers, and it's yet to publically give a solid timeframe.
In response to Foley, Microsoft simply said, “Due to continuing demand for resources in US East 2, we've placed restrictions on additional quota for some customers and are working directly with customers to provide them with the right options”.
As Microsoft naturally prioritizes customers with existing workloads on Azure, issues can arise when a high volume of users provision an unexpectedly high number of cores. Reddit user iwifia says they've experienced similar problems on EU 1 servers.
Fortunately, concerns about Microsoft's ability to deal with DoD demands after winning its $10 billion cloud contract are unfounded. The tech giant naturally doesn't store those machines in the same data center as its general consumers and has separate capacities for each.