authentication-azure-ad-user-assigned-managed-identity-create-managed-instance.md

title	Create an Azure SQL Managed Instance Using a User-Assigned Managed Identity
titleSuffix	Azure SQL Managed Instance
description	This article guides you through creating an Azure SQL Managed Instance using a user-assigned managed identity.
author	VanMSFT
ms.author	vanto
ms.reviewer	vanto, mathoma
ms.date	08/25/2025
ms.service	azure-sql-managed-instance
ms.subservice	security
ms.topic	how-to

Create an Azure SQL Managed Instance with a user-assigned managed identity

[!INCLUDEappliesto-sqlmi]

[!div class="op_single_selector"]

• Azure SQL Database
• Azure SQL Managed Instance

This how-to guide outlines the steps to create an Azure SQL Managed Instance with a user-assigned managed identity from Microsoft Entra ID (formerly Azure Active Directory). For more information on the benefits of using a user-assigned managed identity for the server identity in Azure SQL Database, see Managed identities in Microsoft Entra for Azure SQL.

[!INCLUDE entra-id]

Prerequisites

• Create a user-assigned managed identity and assign it the necessary permission to be a server or managed instance identity. For more information, see Manage user-assigned managed identities and user-assigned managed identity permissions for Azure SQL.
• In the general case, the managed identity needs to have the role SQL Managed Instance Contributor assigned at subscription scope. In addition, it needs to have an Azure RBAC role with the permission Microsoft.ManagedIdentity/userAssignedIdentities/*/assign/action (e.g., Managed Identity Operator) at subscription scope.
• If provisioning in a subnet that is already delegated to Azure SQL Managed Instance, the managed identity only needs the Microsoft.Sql/managedInstances/write permission assigned at subscription scope.
• Az.Sql module 3.4 or higher is required when using PowerShell for user-assigned managed identities.
• The Azure CLI 2.26.0 or higher is required to use the Azure CLI with user-assigned managed identities.
• For a list of limitations and known issues with using user-assigned managed identity, see User-assigned managed identity in Microsoft Entra for Azure SQL

Portal

1. Go to Azure SQL hub at aka.ms/azuresqlhub.

2. In the pane for Azure SQL Managed Instance, select Show options.

3. In the Azure SQL Managed Instance options window, select Create SQL Managed Instance.

   :::image type="content" source="media/authentication-azure-ad-user-assigned-managed-identity-create-managed-instance/show-options-create-sql-managed-instance.png" alt-text="Screenshot from the Azure portal of the Azure SQL hub, showing the Show options button and the Create SQL Managed Instance button." lightbox="media/authentication-azure-ad-user-assigned-managed-identity-create-managed-instance/show-options-create-sql-managed-instance.png":::

4. Fill out the mandatory information required on the Basics tab for Project details and Managed Instance details. This is a minimum set of information required to provision a SQL Managed Instance.

   :::image type="content" source="media/authentication-azure-ad-user-assigned-managed-identity-create-managed-instance/managed-instance-create-basic.png" alt-text="Azure portal screenshot of creating the SQL Managed Instance basic tab":::

   For more information on the configuration options, see Quickstart: Create Azure SQL Managed Instance.

5. Under Authentication, select a preferred authentication model. If you're looking to configure Microsoft Entra-only authentication, see the guide.

6. Next, go through the Networking tab configuration, or leave the default settings.

7. On the Security tab, under Identity, select Configure Identities.

   :::image type="content" source="media/authentication-azure-ad-user-assigned-managed-identity-create-managed-instance/create-instance-configure-identities.png" alt-text="Screenshot of Azure portal security settings of the create managed instance process.":::

8. On the Identity pane, under User assigned managed identity, select Add. Select the desired Subscription and then under User assigned managed identities select the desired user assigned managed identity from the selected subscription. Then select the Select button.

   :::image type="content" source="media/authentication-azure-ad-user-assigned-managed-identity-create-managed-instance/managed-instance-user-assigned-managed-identity-configuration.png" alt-text="Azure portal screenshot of adding user assigned managed identity when configuring managed instance identity.":::

   :::image type="content" source="../database/media/authentication-azure-ad-user-assigned-managed-identity/select-a-user-assigned-managed-identity.png" alt-text="Azure portal screenshot of user assigned managed identity when configuring managed instance identity":::

9. Under Primary identity, select the same user-assigned managed identity selected in the previous step.

   :::image type="content" source="../database/media/authentication-azure-ad-user-assigned-managed-identity/select-a-primary-identity.png" alt-text="Azure portal screenshot of selecting primary identity for the managed instance":::

   [!NOTE] If the system-assigned managed identity is the primary identity, the Primary identity field must be empty.

10. Select Apply

11. You can leave the rest of the settings default. For more information on other tabs and settings, follow the guide in the article Quickstart: Create Azure SQL Managed Instance.

12. On the Additional settings tab, consider using Azure tags. For example, the "Owner" or "CreatedBy" tag to identify who created the resource, and the Environment tag to identify whether this resource is in Production, Development, etc. For more information, see Develop your naming and tagging strategy for Azure resources.

13. Once you're done with configuring your settings, select Review + create to proceed. Select Create to start provisioning the managed instance.

The Azure CLI

The Azure CLI command az sql mi create is used to provision a new Azure SQL Managed Instance. The following command will provision a managed instance with a user-assigned managed identity, and also enable Microsoft Entra-only authentication.

Note

The script requires a virtual network and subnet be created as a prerequisite.

The managed instance SQL Administrator login will be automatically created and the password will be set to a random password. Since SQL Authentication connectivity is disabled with this provision, the SQL Administrator login won't be used.

The Microsoft Entra admin will be the account you set for <AzureADAccount>, and can be used to manage the instance when the provisioning is complete.

Replace the following values in the example:

• <subscriptionId>: Your subscription ID can be found in the Azure portal
• <ResourceGroupName>: Name of the resource group for your managed instance. The resource group should also include the virtual network and subnet created
• <managedIdentity>: The user-assigned managed identity. Can also be used as the primary identity.
• <primaryIdentity>: The primary identity you want to use as the instance identity
• <AzureADAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
• <AzureADAccountSID>: The Microsoft Entra Object ID for the user
• <managedinstancename>: Name the managed instance you want to create
• The subnet parameter needs to be updated with the <subscriptionId>, <ResourceGroupName>, <VNetName>, and <SubnetName>.

# Define variables for resources
subscriptionId="<subscriptionId>"
resourceGroupName="<ResourceGroupName>"
managedIdentity="<managedIdentity>"
primaryIdentity="<primaryIdentity>"
AzureADAccount="<AzureADAccount>"
AzureADAccountSID="<AzureADAccountSID>"
VNetName="<VNetName>"
SubnetName="<SubnetName>"
managedinstancename="<managedinstancename>"

# Create a managed instance with a user-assigned managed identity
az sql mi create \
  --assign-identity \
  --identity-type UserAssigned \
  --user-assigned-identity-id "/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.ManagedIdentity/userAssignedIdentities/$managedIdentity" \
  --primary-user-assigned-identity-id "/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.ManagedIdentity/userAssignedIdentities/$primaryIdentity" \
  --enable-ad-only-auth \
  --external-admin-principal-type User \
  --external-admin-name $AzureADAccount \
  --external-admin-sid $AzureADAccountSID \
  -g $resourceGroupName \
  -n $managedinstancename \
  --subnet "/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.Network/virtualNetworks/$VNetName/subnets/$SubnetName"

For more information, see az sql mi create.

Note

The above example provisions a managed instance with only a user-assigned managed identity. You could set the --identity-type to be UserAssigned,SystemAssigned if you wanted both types of managed identities to be created with the instance.

PowerShell

The PowerShell command New-AzSqlInstance is used to provision a new Azure SQL Managed Instance. The below command will provision a managed instance with a user-assigned managed identity, and also enable Microsoft Entra-only authentication.

Note

The script requires a virtual network and subnet be created as a prerequisite.

The managed instance SQL Administrator login will be automatically created and the password will be set to a random password. Since SQL Authentication connectivity is disabled with this provision, the SQL Administrator login won't be used.

The Microsoft Entra admin will be the account you set for <AzureADAccount>, and can be used to manage the instance when the provisioning is complete.

Replace the following values in the example:

• <managedinstancename>: Name the managed instance you want to create
• <ResourceGroupName>: Name of the resource group for your managed instance. The resource group should also include the virtual network and subnet created
• <subscriptionId>: Your subscription ID can be found in the Azure portal
• <managedIdentity>: The user-assigned managed identity. Can also be used as the primary identity.
• <primaryIdentity>: The primary identity you want to use as the instance identity
• <Location>: Location of the managed instance, such as West US, or Central US
• <AzureADAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
• The SubnetId parameter needs to be updated with the <subscriptionId>, <ResourceGroupName>, <VNetName>, and <SubnetName>.

$instanceName = @{
    Name = "<managedinstancename>"
    ResourceGroupName = "<ResourceGroupName>"
    AssignIdentity = $true
    IdentityType = "UserAssigned"
    UserAssignedIdentityId = "/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<managedIdentity>"
    PrimaryUserAssignedIdentityId = "/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<primaryIdentity>"
    ExternalAdminName = "<AzureADAccount>"
    EnableActiveDirectoryOnlyAuthentication = $true
    Location = "<Location>"
    SubnetId = "/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.Network/virtualNetworks/<VNetName>/subnets/<SubnetName>"
    LicenseType = "LicenseIncluded"
    StorageSizeInGB = 1024
    VCore = 16
    Edition = "GeneralPurpose"
    ComputeGeneration = "Gen5"
}

New-AzSqlInstance @instanceName

For more information, see New-AzSqlInstance.

Note

The above example provisions a managed instance with only a user-assigned managed identity. You could set the You could set the -IdentityType to be "UserAssigned,SystemAssigned" if you wanted both types of managed identities to be created with the instance.

REST API

The SQL Managed Instances - Create Or Update REST API can be used to create a managed instance with a user-assigned managed identity.

Note

The script requires a virtual network and subnet be created as a prerequisite.

The following script will provision a managed instance with a user-assigned managed identity, set the Microsoft Entra admin as <AzureADAccount>, and enable Microsoft Entra-only authentication. The instance SQL Administrator login will also be created automatically and the password will be set to a random password. Since SQL Authentication connectivity is disabled with this provisioning, the SQL Administrator login won't be used.

The Microsoft Entra admin, <AzureADAccount> can be used to manage the instance when the provisioning is complete.

Replace the following values in the example:

• <tenantId>: Can be found by going to the Azure portal, and going to your Microsoft Entra ID resource. In the Overview pane, you should see your Tenant ID
• <subscriptionId>: Your subscription ID can be found in the Azure portal
• <instanceName>: Use a unique managed instance name
• <ResourceGroupName>: Name of the resource group for your logical server
• <AzureADAccount>: Can be a Microsoft Entra user or group. For example, DummyLogin
• <Location>: Location of the server, such as westus2, or centralus
• <objectId>: Can be found by going to the Azure portal, and going to your Microsoft Entra ID resource. In the User pane, search for the Microsoft Entra user and find their Object ID
• The subnetId parameter needs to be updated with the <ResourceGroupName>, the Subscription ID, <VNetName>, and <SubnetName>

Import-Module Azure
Import-Module MSAL.PS

$tenantId = '<tenantId>'
$clientId = '1950a258-227b-4e31-a9cf-717495945fc2' # Static Microsoft client ID used for getting a token
$subscriptionId = '<subscriptionId>'
$uri = "urn:ietf:wg:oauth:2.0:oob" 
$instanceName = "<instanceName>"
$resourceGroupName = "<ResourceGroupName>"
$scopes ="https://management.core.windows.net/.default"

Login-AzAccount -tenantId $tenantId

# Login as an Azure AD user with permission to provision a managed instance

$result = Get-MsalToken -RedirectUri $uri -ClientId $clientId -TenantId $tenantId -Scopes $scopes

$authHeader = @{
'Content-Type'='application\json; '
'Authorization'=$result.CreateAuthorizationHeader()
}

$body = '{
"name": "<instanceName>", "type": "Microsoft.Sql/managedInstances", "identity": {"type" : "UserAssigned", "UserAssignedIdentities" : {"/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<managedIdentity>" : {}}},"location": "<Location>", "sku": {"name": "GP_Gen5", "tier": "GeneralPurpose", "family":"Gen5","capacity": 8},
"properties": { "PrimaryUserAssignedIdentityId":"/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<primaryIdentity>","administrators":{ "login":"<AzureADAccount>", "sid":"<objectId>", "tenantId":"<tenantId>", "principalType":"User", "azureADOnlyAuthentication":true },
"subnetId": "/subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.Network/virtualNetworks/<VNetName>/subnets/<SubnetName>",
"licenseType": "LicenseIncluded", "vCores": 8, "storageSizeInGB": 2048, "collation": "SQL_Latin1_General_CP1_CI_AS", "proxyOverride": "Proxy", "timezoneId": "UTC", "privateEndpointConnections": [], "storageAccountType": "GRS", "zoneRedundant": false 
  }
}'

# To provision the instance, execute the `PUT` command

Invoke-RestMethod -Uri https://management.azure.com/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.Sql/managedInstances/$instanceName/?api-version=2020-11-01-preview -Method PUT -Headers $authHeader -Body $body -ContentType "application/json"

To check the results, execute the GET command:

Invoke-RestMethod -Uri https://management.azure.com/subscriptions/$subscriptionId/resourceGroups/$resourceGroupName/providers/Microsoft.Sql/managedInstances/$instanceName/?api-version=2020-11-01-preview -Method GET -Headers $authHeader  | Format-List

ARM Template

To provision a new virtual network, subnet, and new managed instance configured with a Microsoft Entra admin, a user-assigned managed identity, and Microsoft Entra-only authentication, use the following template.

Use a Custom deployment in the Azure portal, and Build your own template in the editor. Next, Save the configuration once you pasted in the example.

To get your user-assigned managed identity Resource ID, search for Managed Identities in the Azure portal. Find your managed identity, and go to Properties. An example of your UMI Resource ID will look like /subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<managedIdentity>.

{
    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
    "contentVersion": "1.0.0.1",
    "parameters": {
        "managedInstanceName": {
            "type": "String",
            "metadata": {
                "description": "Enter managed instance name."
            }
        },
        "aad_admin_name": {
            "type": "String",
            "metadata": {
                "description": "The name of the Azure AD admin for the SQL managed instance."
            }
        },
        "aad_admin_objectid": {
            "type": "String",
            "metadata": {
                "description": "The Object ID of the Azure AD admin."
            }
        },
        "aad_admin_tenantid": {
            "type": "String",
            "defaultValue": "[subscription().tenantId]",
            "metadata": {
                "description": "The Tenant ID of the Azure Active Directory"
            }
        },
        "aad_admin_type": {
            "defaultValue": "User",
            "allowedValues": [
                "User",
                "Group",
                "Application"
            ],
            "type": "String"
        },
        "aad_only_auth": {
            "defaultValue": true,
            "type": "Bool"
        },
        "user_identity_resource_id": {
            "defaultValue": "",
            "type": "String",
            "metadata": {
                "description": "The Resource ID of the user-assigned managed identity, in the form of /subscriptions/<subscriptionId>/resourceGroups/<ResourceGroupName>/providers/Microsoft.ManagedIdentity/userAssignedIdentities/<managedIdentity>."
            }
        },
        "location": {
            "defaultValue": "[resourceGroup().location]",
            "type": "String",
            "metadata": {
                "description": "Enter location. If you leave this field blank resource group location would be used."
            }
        },
        "virtualNetworkName": {
            "type": "String",
            "defaultValue": "SQLMI-VNET",
            "metadata": {
                "description": "Enter virtual network name. If you leave this field blank name will be created by the template."
            }
        },
        "addressPrefix": {
            "defaultValue": "10.0.0.0/16",
            "type": "String",
            "metadata": {
                "description": "Enter virtual network address prefix."
            }
        },
        "subnetName": {
            "type": "String",
            "defaultValue": "ManagedInstances",
            "metadata": {
                "description": "Enter subnet name. If you leave this field blank name will be created by the template."
            }
        },
        "subnetPrefix": {
            "defaultValue": "10.0.0.0/24",
            "type": "String",
            "metadata": {
                "description": "Enter subnet address prefix."
            }
        },
        "skuName": {
            "defaultValue": "GP_Gen5",
            "allowedValues": [
                "GP_Gen5",
                "BC_Gen5"
            ],
            "type": "String",
            "metadata": {
                "description": "Enter sku name."
            }
        },
        "vCores": {
            "defaultValue": 16,
            "allowedValues": [
                8,
                16,
                24,
                32,
                40,
                64,
                80
            ],
            "type": "Int",
            "metadata": {
                "description": "Enter number of vCores."
            }
        },
        "storageSizeInGB": {
            "defaultValue": 256,
            "minValue": 32,
            "maxValue": 8192,
            "type": "Int",
            "metadata": {
                "description": "Enter storage size."
            }
        },
        "licenseType": {
            "defaultValue": "LicenseIncluded",
            "allowedValues": [
                "BasePrice",
                "LicenseIncluded"
            ],
            "type": "String",
            "metadata": {
                "description": "Enter license type."
            }
        }
    },
    "variables": {
        "networkSecurityGroupName": "[concat('SQLMI-', parameters('managedInstanceName'), '-NSG')]",
        "routeTableName": "[concat('SQLMI-', parameters('managedInstanceName'), '-Route-Table')]"
    },
    "resources": [
        {
            "type": "Microsoft.Network/networkSecurityGroups",
            "apiVersion": "2020-06-01",
            "name": "[variables('networkSecurityGroupName')]",
            "location": "[parameters('location')]",
            "properties": {
                "securityRules": [
                    {
                        "name": "allow_tds_inbound",
                        "properties": {
                            "description": "Allow access to data",
                            "protocol": "Tcp",
                            "sourcePortRange": "*",
                            "destinationPortRange": "1433",
                            "sourceAddressPrefix": "VirtualNetwork",
                            "destinationAddressPrefix": "*",
                            "access": "Allow",
                            "priority": 1000,
                            "direction": "Inbound"
                        }
                    },
                    {
                        "name": "deny_all_inbound",
                        "properties": {
                            "description": "Deny all other inbound traffic",
                            "protocol": "*",
                            "sourcePortRange": "*",
                            "destinationPortRange": "*",
                            "sourceAddressPrefix": "*",
                            "destinationAddressPrefix": "*",
                            "access": "Deny",
                            "priority": 4096,
                            "direction": "Inbound"
                        }
                    },
                    {
                        "name": "deny_all_outbound",
                        "properties": {
                            "description": "Deny all other outbound traffic",
                            "protocol": "*",
                            "sourcePortRange": "*",
                            "destinationPortRange": "*",
                            "sourceAddressPrefix": "*",
                            "destinationAddressPrefix": "*",
                            "access": "Deny",
                            "priority": 4096,
                            "direction": "Outbound"
                        }
                    }
                ]
            }
        },
        {
            "type": "Microsoft.Network/routeTables",
            "apiVersion": "2020-06-01",
            "name": "[variables('routeTableName')]",
            "location": "[parameters('location')]",
            "properties": {
                "disableBgpRoutePropagation": false
            }
        },
        {
            "type": "Microsoft.Network/virtualNetworks",
            "apiVersion": "2020-06-01",
            "name": "[parameters('virtualNetworkName')]",
            "location": "[parameters('location')]",
            "dependsOn": [
                "[variables('routeTableName')]",
                "[variables('networkSecurityGroupName')]"
            ],
            "properties": {
                "addressSpace": {
                    "addressPrefixes": [
                        "[parameters('addressPrefix')]"
                    ]
                },
                "subnets": [
                    {
                        "name": "[parameters('subnetName')]",
                        "properties": {
                            "addressPrefix": "[parameters('subnetPrefix')]",
                            "routeTable": {
                                "id": "[resourceId('Microsoft.Network/routeTables', variables('routeTableName'))]"
                            },
                            "networkSecurityGroup": {
                                "id": "[resourceId('Microsoft.Network/networkSecurityGroups', variables('networkSecurityGroupName'))]"
                            },
                            "delegations": [
                                {
                                    "name": "miDelegation",
                                    "properties": {
                                        "serviceName": "Microsoft.Sql/managedInstances"
                                    }
                                }
                            ]
                        }
                    }
                ]
            }
        },
        {
            "type": "Microsoft.Sql/managedInstances",
            "apiVersion": "2020-11-01-preview",
            "name": "[parameters('managedInstanceName')]",
            "location": "[parameters('location')]",
            "dependsOn": [
                "[parameters('virtualNetworkName')]"
            ],
            "sku": {
                "name": "[parameters('skuName')]"
            },
            "identity": {
                "type": "UserAssigned",
                "UserAssignedIdentities": {
                    "[parameters('user_identity_resource_id')]": {}
                }
            },
            "properties": {
                "subnetId": "[resourceId('Microsoft.Network/virtualNetworks/subnets', parameters('virtualNetworkName'), parameters('subnetName'))]",
                "storageSizeInGB": "[parameters('storageSizeInGB')]",
                "vCores": "[parameters('vCores')]",
                "licenseType": "[parameters('licenseType')]",
                "PrimaryUserAssignedIdentityId": "[parameters('user_identity_resource_id')]",
                "administrators": {
                    "login": "[parameters('aad_admin_name')]",
                    "sid": "[parameters('aad_admin_objectid')]",
                    "tenantId": "[parameters('aad_admin_tenantid')]",
                    "principalType": "[parameters('aad_admin_type')]",
                    "azureADOnlyAuthentication": "[parameters('aad_only_auth')]"
                }
            }
        }
    ]
}

---

Related content

• Managed identities in Microsoft Entra for Azure SQL