Azure price increase 2027: up to 17% on 1 February, by region and VM series

Summary. Pay-as-you-go prices for most Azure virtual machines and many Azure Storage meters rise on 1 February 2027 in seven regions: 17% in North Europe (Dublin), 11% in France Central and France South, 9% in West Europe (Amsterdam), Norway East and Norway West, and 8% in Southeast Asia (Singapore). Microsoft told affected customers through an Azure Service Health advisory in early October 2026 and, by 11 November, had published no pricing page or Azure Updates entry. The advisory excludes the v1 and v2 series, six v7 series and 15 storage services, so the common v3 to v6 D and E families and Managed Disks are in scope. Partners report a separate rise of about 25% worldwide for v1 and v2. Microsoft Learn confirms that reservations bought from 1 February 2027 for savings-plan-eligible services cannot be exchanged. List prices change the usual advice: in North Europe a 4-vCPU D4s v7 costs $0.305 an hour, more than a D4s v5 will cost after the rise (about $0.250). Our view: reserve stable v5 and v6 capacity before 1 February, move v3 and v2 workloads to v5 or v6, and choose v7 only where a test shows it saves cores.

About this article. For finance, FinOps and platform teams running Azure in Europe or Singapore, including Indian companies hosting there. On 11 November 2026 we checked the advisory text as quoted on Microsoft Q&A, Microsoft Learn pages on reservations, savings plans and VM retirements, the Azure Updates feed and Linux list prices in the Azure Retail Prices API. Items marked as reported come from partners or press and are not confirmed by Microsoft. Not financial advice; no vendor paid for inclusion. Researched with AI assistance and reviewed by our editorial team.

What Microsoft told customers, and what it has not published

Microsoft sent the notice through Azure Service Health. Arvato Systems and LicenseQ give its tracking ID as JGW1-KG0, and LicenseQ and MetrixData 360 date it 2 October 2026. The first public traces are Microsoft Q&A threads opened on 5 October 2026, where a customer listed the regions, percentages and exclusions and noted that the advisory named no affected subscriptions, resources, VM series or storage services.

That is the practical problem: the advisory lists what is excluded, not what is included. Andreas Baumgarten, an Azure MVP and volunteer moderator on Microsoft Q&A, answered the same day that everything missing from the exclusion list should be treated as affected. Arvato Systems is more cautious, treating the customer-specific advisory and the pricing in your agreement as decisive. Plan on the moderator's reading, then confirm with your account team.

HostingJournalist reports that the notice cites regional market conditions, infrastructure investment and more consistent pricing between regions. On 11 November 2026 the Linux VM pricing page carried no notice, the Azure Updates feed (last entry 10 November) had no pricing item, and the Retail Prices API still listed a D4s v5 in North Europe at $0.214 an hour, a rate in force since November 2021. Until Microsoft publishes new rates, the advisory is the primary source.

The percentages in the table are those quoted from the advisory on Microsoft Q&A. According to nOps and LicenseQ, the rise applies to pay-as-you-go, Enterprise Agreement and Microsoft Customer Agreement rates, and LicenseQ says it flows through to CSP pricing. If you have negotiated discounts, ask your account team or CSP partner in writing how they apply to the new list prices.

What is excluded, and what that leaves in scope

The advisory, as quoted on Microsoft Q&A, excludes these VM series from the regional rise:

• v1: Bv1, D, Ds, F, Fs, G, Gs, L, NP, HCS

• v2: Av2, Amv2, Dv2, Dsv2, Fsv2, Lsv2

• v7: Dsv7, Ddsv7, Dlsv7, Dldsv7, Esv7, Edsv7

So the families most teams run are in scope in the seven regions: Dv3, Dsv3, Ev3 and Esv3; the v4, v5 and v6 generations of D and E; the B-series v2 burstable families; and GPU families such as NC, ND and NV. Azure size names use the letter a for AMD and p for Arm processors, and v7 families such as Dasv7, Easv7 and Dpsv7 are not on the list. Check the exact series name before you assume a v7 VM is safe.

The storage exclusions, as the moderator relayed them, are Azure Container Storage, Azure Managed Lustre, the Azure NetApp Files cross-region replication SKU, Blob Features, Change Feed, General Block Blob, Import/Export, Queues, Queues v2, Standard Page Blob, Storage Actions, Storage Bandwidth, Storage Discovery, Tables and the Transaction Optimized SKU. Managed Disks and Azure Files are not on the list.

Meter names complicate this. HostingJournalist reports a clarification, passed on by a customer from Azure Support, that General Block Blob v2 and General Block Blob v2 Hierarchical Namespace are affected even though General Block Blob is excluded, and that Files, Files v2, Premium Files v1, Azure Files Provisioned v2, File Sync and applicable reserved capacity are affected too. Treat that as reported, and match your own meter names in Cost Management rather than the product names on a storage account.

The other 1 February changes: confirmed versus reported

Only some of the related changes are on a Microsoft page. The table draws on the Microsoft Learn exchange, retirement, transition and savings plan pages, the Q&A reservations thread and the partner reports cited below.

The exchange rule carries the hard deadline. Microsoft Learn says reservations bought from 1 February 2027 cannot be exchanged where the service is covered by savings plans, which includes Virtual Machines, App Service and SQL Database, while reservations bought earlier keep one final exchange. Until then, exchanges carry no penalty and no annual limit. Instance size flexibility is unchanged, and refunds stay capped at $50,000 of cancelled commitment in a rolling 12-month window per billing profile or enrolment.

The v1 and v2 rise is reported only. nOps, a FinOps vendor, wrote on 5 October that Microsoft had started emailing customers about a second increase of roughly 25% in all regions for v1 and v2, not overlapping the regional rise. LicenseQ and MetrixData 360 repeat the figure from Microsoft partners. We found no Microsoft page confirming it.

The v3 position is the awkward one, and it is confirmed. Dv3, Dsv3, Ev3 and Esv3 are not excluded, so they take the regional rise, and Microsoft Learn says new or renewed one-year and three-year reservations are no longer available for the applicable A, B, D, E, F and L variants of v1 to v3. These four series retire on 15 November 2029 and have been under capacity growth restrictions since July 2026: new subscriptions cannot deploy them, and existing ones get no extra quota. A v3 estate in Dublin therefore faces 17% with no reservation route; the options are a savings plan, which does not fix the price, or a newer series.

For sequencing: D, Ds, Dv2, Dsv2 and Ls retire on 1 May 2028; Av2, Amv2, B-series v1, F, Fs, Fsv2, G, Gs and Lsv2 on 15 November 2028; NP-series and HC-series on 31 May 2027. Our guide to the retired Reserved VM Instances covers the reservation side.

Find your exposure in an afternoon

The advisory does not list your resources, so build the list yourself. Azure Resource Graph can count VMs and scale set instances by region and size across every subscription you can read:

            Resources
| where type in~ ('microsoft.compute/virtualmachines', 'microsoft.compute/virtualmachinescalesets')
| where location in~ ('northeurope','westeurope','francecentral','francesouth','norwayeast','norwaywest','southeastasia')
| where type =~ 'microsoft.compute/virtualmachines' or tostring(properties.orchestrationMode) !~ 'Flexible'
| extend size = iff(type =~ 'microsoft.compute/virtualmachines', tostring(properties.hardwareProfile.vmSize), tostring(sku.name))
| extend instances = iff(type =~ 'microsoft.compute/virtualmachinescalesets', toint(sku.capacity), 1)
| summarize instances = sum(instances) by location, size
| order by location asc, instances desc
          

The third line skips Flexible scale sets, whose VMs already appear as VM resources, so they are not counted twice. AKS node pools built on scale sets are included. Then work through four steps:

1. Tag each size as excluded v1 or v2 (reported 25%), excluded v7 (no rise), or in scope (regional rise).

1. In Cost Management, group last month's cost by meter and location for the seven regions, to catch storage, disks and other metered services.

1. Export your reservation list with expiry dates. A reservation ending after 1 February 2027 renews at the new price, or falls to the new pay-as-you-go rate if it lapses.

1. Watch Service Health for follow-up advisories. The Q&A moderator expected further notices, but none had appeared publicly by 11 November.

What today's list prices say about the escape routes

Before you pick a response, check list prices. The table uses Linux pay-as-you-go rates from the Retail Prices API on 11 November 2026 for 4-vCPU sizes (D4s v3, D4s v5 and D4s v7 have 16 GiB of memory; D3 v2 has 14 GiB) and applies the advisory's percentages.

Three things follow. First, excluded does not mean cheaper. In North Europe a D4s v7 costs about 22% more than a D4s v5 after the rise (0.305 ÷ 0.250 = 1.22), so v7 only pays if its faster processor lets you run about 18% fewer cores. Second, D4s v3 and D4s v5 have the same list price in North Europe, so moving v3 to v5 costs nothing on pay-as-you-go and makes the capacity reservable again. Third, for this size Dublin to Amsterdam saves nothing: West Europe starts higher, so after both rises a D4s v5 costs about $0.251 an hour there against $0.250 in North Europe.

The v7 route may not exist in every affected region. On 11 November 2026 the API listed D4s v7 in North Europe, West Europe and Norway East, but not in France Central, France South, Norway West or Southeast Asia.

FinOps responses, in order of payback

Reserve stable in-scope capacity before 1 February

A one-year reservation for a D4s v5 in North Europe costs $1,157, about $0.132 an hour (1,157 ÷ 8,760) against $0.214 on pay-as-you-go; the one-year savings plan rate is about $0.161. A volunteer moderator on Microsoft Q&A, pointing to a portal message, says existing VM reservations keep their price for the term, while those bought or renewed after the rise cost more. Buying before 1 February also keeps one final exchange. Size the reservation to the baseline you are confident will run, in the same series, for the whole term. Reserving waste only fixes the price of the waste.

Do not count on a savings plan to hold the price

Microsoft Learn says savings plan prices can change like pay-as-you-go prices, on the first day of a month, and that current savings plan pricing applies whenever the plan was bought. Your hourly commitment stays the same but buys less. If savings plan rates rise by the same 17%, a plan that covered all eligible usage covers about 85% afterwards (1 ÷ 1.17 = 0.855), and the rest bills at the new pay-as-you-go rate. Savings plans cannot be cancelled or refunded, and compute plans do not cover storage. They still suit usage that will change series or region during 2027.

Move v3 and v2 to v5 or v6, and test v7 on performance

Microsoft's retirement guidance points Dv3 and Dsv3 users to Dv5, Dv6 or Dv7, and Ev3 and Esv3 users to Ev5, Esv6 or Esv7. On list price, v5 is the cheaper landing point in North Europe: the same price as v3 today, reservable before 1 February, and well below v7 even after the rise. Choose v7 where a benchmark of your own workload shows the core reduction that closes the gap, and check quota and capacity before you schedule the move.

Right-size before you commit

From 1 February, every idle core and oversized disk in these regions costs up to 17% more. Azure Advisor and Cost Management recommendations are the quick pass. For storage, review access tiers and lifecycle rules on in-scope meters, and remove orphaned disks and snapshots.

Treat a region move as a project

The headline gap between Dublin and Amsterdam is 8 points, but the table above shows no saving for a D4s v5. A move also brings transfer charges, latency changes, residency checks and a failover redesign. North Europe pairs with West Europe for disaster recovery, as do France Central with France South and Norway East with Norway West; Southeast Asia pairs with East Asia, which is not affected. For those three pairs, both halves of a paired design get dearer. Our multi-region resilience and DR service explains the alternatives.

Worked cost example: a North Europe estate

Take a North Europe estate on Linux pay-as-you-go: 60 D4s v5, 20 D4s v3 and 10 D3 v2 VMs running 730 hours a month, plus $3,000 a month of Managed Disks and Azure Files. Compute prices are the list rates above. Per VM, 0.214 × 730 = $156.22 a month now and 156.22 × 1.17 = $182.78 from 1 February. A D3 v2 is 0.263 × 730 = $191.99, or 191.99 × 1.25 = $239.99 if the reported increase applies.

Doing nothing adds $3,114.80 a month, 17.9% of the bill or $37,377.60 a year. Without the reported v2 increase it adds $2,634.80, or 15.1%.

Now apply three actions before 1 February:

• Reserve 45 of the 60 D4s v5 for one year at $1,157, which is $96.42 a month each (1,157 ÷ 12): 45 × 96.42 = $4,338.90. The other 15 stay on pay-as-you-go at 15 × 182.78 = $2,741.70.

• Move the 20 D4s v3 and 10 D3 v2 to D4s v5 and reserve them too: 30 × 96.42 = $2,892.60.

• Right-size disks and Files by 10%, from $3,000 to $2,700: 2,700 × 1.17 = $3,159.00.

The new monthly bill is 4,338.90 + 2,741.70 + 2,892.60 + 3,159.00 = $13,132.20: $7,400.10 a month below doing nothing and $4,285.30 (24.6%) below today's bill. Most of that is the reservation discount, which was available before the rise; the rise makes waiting more expensive.

Moving the 30 legacy VMs to D4s v7 instead would cost 30 × 222.65 = $6,679.50 a month (0.305 × 730 = $222.65 per VM), against 30 × 182.78 = $5,483.40 on pay-as-you-go D4s v5 after the rise. If the migration slips past 1 February, a reservation bought in January keeps today's rate but sits partly idle until the VMs move.

Southeast Asia, India and the EU

Indian companies that host in Singapore face 8%. No Indian Azure region is among the seven. A D4s v5 lists at $0.202 an hour in Central India against $0.240 in Southeast Asia, about 16% cheaper today and about 22% cheaper once Southeast Asia rises to $0.259. For workloads serving Indian users, an Indian region can also cut latency and suit contracts or regulators that expect data to stay in India, but check service and size availability first. Our Azure East US 3 region planning guide compares the Indian regions.

For EU workloads, Article 29 of the EU Data Act bars providers from charging switching fees from 12 January 2027. That helps if you are weighing leaving Azure for a workload, as our EU Data Act switching charges guide explains. The Act defines switching as moving to a different provider or to on-premises infrastructure, so a move between two Azure regions is not switching and normal transfer charges apply.

Checklist: 11 November 2026 to 1 February 2027

1. By 22 November 2026: run the Resource Graph query, export cost by meter and location, and list reservations with expiry dates.

1. By 6 December 2026: tag every size and meter, and agree the steady baseline with workload owners.

1. By 18 December 2026: get budget approval for reservations and for v5 or v6 migrations, before holiday change freezes.

1. By 15 January 2027: buy reservations for stable in-scope capacity, and use exchanges to realign existing reservations while they are still unlimited.

1. By 31 January 2027: finish right-sizing and clean-up, and move the first v3 and v2 workloads.

1. First week of February 2027: check invoices and meter prices against your model.

1. Throughout: watch Service Health, and get written confirmation of how negotiated discounts apply.

How eCorpIT can help

eCorpIT is a Gurugram-based technology organisation, founded in 2021, assessed at CMMI Level 5 and MSME certified, with senior-led engineering teams working across AWS, Microsoft and Google platforms. Our cloud FinOps managed service can build the exposure inventory described above and model reservations, savings plans and v5 or v6 migrations against your real usage before 1 February 2027. Talk to us at /contact-us/.

Last updated: 11 November 2026.

References

1. Clarification Required: Azure VM and Storage Pricing Update from 1 February 2027, 5 October 2026 — Microsoft Q&A

1. Azure Updates RSS feed, read 11 November 2026 — Microsoft

1. Azure VM Price Increase (February 2027): What It Means For You, 5 October 2026 — nOps

1. Self-service exchanges and refunds for Azure Reservations — Microsoft Learn

1. Azure Retail Prices API: North Europe D4s v3, D4s v5, D4s v7 and D3 v2, read 11 November 2026 — Microsoft

1. Azure Price Increase in 2027: What Businesses Should Consider Now, 27 October 2026 — Arvato Systems

1. Azure Price Increase 2027: Regions and What to Do, 2 November 2026 — LicenseQ

1. Microsoft Licensing Changes, November 2026 — MetrixData 360

1. Microsoft to Raise Azure Prices by Up to 17% in Seven Regions, 16 October 2026 — HostingJournalist

1. Linux Virtual Machines pricing — Microsoft Azure

1. Azure Retail Prices REST API overview — Microsoft Learn

1. Azure VM sizes naming conventions — Microsoft Learn

1. VM size series retirements, capacity growth restrictions, and modernization guidance — Microsoft Learn

1. Transition guide for retired Azure Reserved VM Instances — Microsoft Learn

1. What are savings plans? — Microsoft Learn

1. Azure VM Price Change, 5 October 2026 — Microsoft Q&A

1. Azure Retail Prices API: D4s v5 in North Europe, West Europe, Southeast Asia and Central India, read 11 November 2026 — Microsoft

1. Azure Retail Prices API: D4s v7 in all regions, read 11 November 2026 — Microsoft

1. Dsv5 size series — Microsoft Learn

1. Dsv7 size series — Microsoft Learn

1. Dv2 size series — Microsoft Learn

1. Azure Retail Prices API: North Europe D4s v5 with reservation and savings plan prices, read 11 November 2026 — Microsoft

1. Azure region pairs and nonpaired regions — Microsoft Learn

1. Regulation (EU) 2023/2854 (Data Act), Articles 2 and 29 — EUR-Lex