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App Service and Function App Deployment Failing with “ServerFarmCreationNotAllowed” Error

Alpesh Shivankar 20 Reputation points
2025-10-25T01:05:39.2666667+00:00

Hi Team,

I’m suddenly encountering the following error while trying to create or update both an Azure Function App and a Web App:

{

"code": "ServerFarmCreationNotAllowed",

"message": "The subscription 'e3c9e454-ae0a-4fcd-8b75-7af1f0bc2260' is not allowed to create or update the serverfarm."

}

This setup was working fine earlier, but recently it stopped working without any configuration or permission changes from my side.

Could you please help me understand why my subscription can no longer create or update an App Service Plan (serverfarm)?

Has there been any recent change in subscription permissions or regional restrictions?

What are the possible steps to resolve this issue and re-enable Function App / Web App deployment?

Thank you in advance for your help!

Azure Functions
Azure Functions
An Azure service that provides an event-driven serverless compute platform.
Answer accepted by question author
  1. SUNOJ KUMAR YELURU 16,611 Reputation points MVP Volunteer Moderator
    2025-10-25T03:47:03.3166667+00:00

    Hello @Alpesh Shivankar

    A "Deny" policy targeting Microsoft.Web/serverfarms prevents creation/updates. This is the most common cause. verify the below points

    1. exceeding the quota for App Service Plans can cause this issue.

    The primary cause is likely an Azure Policy denying the creation of App Service Plans. The user should check Azure Policy Assignments for their subscription, identify the policy owner, and request an exemption or modification. If not a policy issue, check subscription quotas and status.

    If the Answer is helpful, please click Accept Answer and Up-Vote, so that it can help others in the community looking for help on similar topics.

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