Server-side encryption of Azure Disk Storage

Server-side encryption (SSE) protects your data and helps you meet your organizational security and compliance commitments. SSE automatically encrypts your data stored on Azure managed disks (OS and data disks) at rest by default when persisting it to the cloud.

Data in Azure managed disks is encrypted transparently using 256-bit AES encryption, one of the strongest block ciphers available, and is FIPS 140-2 compliant. For more information about the cryptographic modules underlying Azure managed disks, see Cryptography API: Next Generation

Server-side encryption does not impact the performance of managed disks and there is no additional cost.

About encryption key management

You can rely on platform-managed keys for the encryption of your managed disk, or you can manage encryption using your own keys. If you choose to manage encryption with your own keys, you can specify a customer-managed key to use for encrypting and decrypting all data in managed disks.

The following sections describe each of the options for key management in greater detail.

Platform-managed keys

By default, managed disks use platform-managed encryption keys. All managed disks, snapshots, images, and data written to existing managed disks are automatically encrypted-at-rest with platform-managed keys.

Customer-managed keys

You can choose to manage encryption at the level of each managed disk, with your own keys. Server-side encryption for managed disks with customer-managed keys offers an integrated experience with Azure Key Vault. You can either import your RSA keys to your Key Vault or generate new RSA keys in Azure Key Vault.

Azure managed disks handles the encryption and decryption in a fully transparent fashion using envelope encryption. It encrypts data using an AES 256 based data encryption key (DEK), which is, in turn, protected using your keys. The Storage service generates data encryption keys and encrypts them with customer-managed keys using RSA encryption. The envelope encryption allows you to rotate (change) your keys periodically as per your compliance policies without impacting your VMs. When you rotate your keys, the Storage service re-encrypts the data encryption keys with the new customer-managed keys.

Full control of your keys

You must grant access to managed disks in your Key Vault to use your keys for encrypting and decrypting the DEK. This allows you full control of your data and keys. You can disable your keys or revoke access to managed disks at any time. You can also audit the encryption key usage with Azure Key Vault monitoring to ensure that only managed disks or other trusted Azure services are accessing your keys.

When you disable or delete your key, any VMs with disks using that key will automatically shut down. After this, the VMs will not be usable unless the key is enabled again or you assign a new key.

For premium SSDs, standard SSDs, and standard HDDs: When you disable or delete your key, any VMs with disks using that key will automatically shut down. After this, the VMs will not be usable unless the key is enabled again or you assign a new key.

For ultra disks: when you disable or delete a key, any VMs with ultra disks using the key won't automatically shut down. Once you deallocate and restart the VMs then the disks will stop using the key and then VMs won't come back online. To bring the VMs back online, you must assign a new key or enable the existing key.

The following diagram shows how managed disks use Azure Active Directory and Azure Key Vault to make requests using the customer-managed key:

Managed disk and customer-managed keys workflow. An admin creates an Azure Key Vault, then creates a disk encryption set, and sets up the disk encryption set. The set is associated to a VM, which allows the disk to make use of Azure AD to authenticate

The following list explains the diagram in more detail:

  1. An Azure Key Vault administrator creates key vault resources.
  2. The key vault admin either imports their RSA keys to Key Vault or generate new RSA keys in Key Vault.
  3. That administrator creates an instance of Disk Encryption Set resource, specifying an Azure Key Vault ID and a key URL. Disk Encryption Set is a new resource introduced for simplifying the key management for managed disks.
  4. When a disk encryption set is created, a system-assigned managed identity is created in Azure Active Directory (AD) and associated with the disk encryption set.
  5. The Azure key vault administrator then grants the managed identity permission to perform operations in the key vault.
  6. A VM user creates disks by associating them with the disk encryption set. The VM user can also enable server-side encryption with customer-managed keys for existing resources by associating them with the disk encryption set.
  7. Managed disks use the managed identity to send requests to the Azure Key Vault.
  8. For reading or writing data, managed disks sends requests to Azure Key Vault to encrypt (wrap) and decrypt (unwrap) the data encryption key in order to perform encryption and decryption of the data.

To revoke access to customer-managed keys, see Azure Key Vault PowerShell and Azure Key Vault CLI. Revoking access effectively blocks access to all data in the storage account, as the encryption key is inaccessible by Azure Storage.


For now, customer-managed keys have the following restrictions:

  • If this feature is enabled for your disk, you cannot disable it. If you need to work around this, you must copy all the data to an entirely different managed disk that isn't using customer-managed keys.
  • Only software and HSM RSA keys of sizes 2,048-bit, 3,072-bit and 4,096-bit are supported, no other keys or sizes.
    • HSM keys require the premium tier of Azure Key vaults.
  • Disks created from custom images that are encrypted using server-side encryption and customer-managed keys must be encrypted using the same customer-managed keys and must be in the same subscription.
  • Snapshots created from disks that are encrypted with server-side encryption and customer-managed keys must be encrypted with the same customer-managed keys.
  • All resources related to your customer-managed keys (Azure Key Vaults, disk encryption sets, VMs, disks, and snapshots) must be in the same subscription and region.
  • Disks, snapshots, and images encrypted with customer-managed keys cannot move to another subscription.
  • Managed disks encrypted using customer-managed keys cannot also be encrypted with Azure Disk Encryption.
  • Can only create up to 50 disk encryption sets per region per subscription.
  • For information about using customer-managed keys with shared image galleries, see Preview: Use customer-managed keys for encrypting images.


Customer-managed keys rely on managed identities for Azure resources, a feature of Azure Active Directory (Azure AD). When you configure customer-managed keys, a managed identity is automatically assigned to your resources under the covers. If you subsequently move the subscription, resource group, or managed disk from one Azure AD directory to another, the managed identity associated with managed disks isn't transferred to the new tenant, so customer-managed keys may no longer work. For more information, see Transferring a subscription between Azure AD directories.

Encryption at host - End-to-end encryption for your VM data

When you enable encryption at host, that encryption starts on the VM host itself, the Azure server that your VM is allocated to. The data for your temporary disk and OS/data disk caches are stored on that VM host. After enabling encryption at host, all this data is encrypted at rest and flows encrypted to the Storage service, where it is persisted. Essentially, encryption at host encrypts your data from end-to-end. Encryption at host does not use your VM's CPU and doesn't impact your VM's performance.

Temporary disks are encrypted at rest with platform-managed keys when you enable end-to-end encryption. The OS and data disk caches are encrypted at rest with either customer-managed or platform-managed keys, depending on the selected disk encryption type. For example, if a disk is encrypted with customer-managed keys, then the cache for the disk is encrypted with customer-managed keys, and if a disk is encrypted with platform-managed keys then the cache for the disk is encrypted with platform-managed keys.


  • Does not support ultra disks.
  • Cannot be enabled if Azure Disk Encryption (guest-VM encryption using bitlocker/VM-Decrypt) is enabled on your VMs/virtual machine scale sets.
  • Azure Disk Encryption cannot be enabled on disks that have encryption at host enabled.
  • The encryption can be enabled on existing virtual machine scale set. However, only new VMs created after enabling the encryption are automatically encrypted.
  • Existing VMs must be deallocated and reallocated in order to be encrypted.

Supported regions

Currently available only in the following regions:

  • West US
  • West US 2
  • East US
  • East US 2
  • South Central US
  • US Gov Virginia
  • US Gov Arizona

Supported VM sizes

All the latest generation of VM sizes support encryption at host:

Type Not Supported Supported
General purpose Dv3, Dav4, Dv2, Av2 B, DSv2, Dsv3, DC, DCv2, Dasv4
Compute optimized Fsv2
Memory optimized Ev3, Eav4 DSv2, Esv3, M, Mv2, Easv4
Storage optimized Ls, Lsv2 (NVMe disks not encrypted)
GPU NC, NV NCv2, NCv3, ND, NVv3, NVv4, NDv2 (preview)
High performance compute H HB, HC, HBv2
Previous generations F, A, D, L, G DS, GS, Fs, NVv2

Upgrading the VM size will result in validation to check if the new VM size supports the EncryptionAtHost feature.

Double encryption at rest

High security sensitive customers who are concerned of the risk associated with any particular encryption algorithm, implementation, or key being compromised can now opt for additional layer of encryption using a different encryption algorithm/mode at the infrastructure layer using platform managed encryption keys. This new layer can be applied to disks, snapshots, and images, all of which will be encrypted at rest with double encryption.

Supported regions

Currently available only in the following regions:

  • West US 2
  • East US
  • South Central US
  • US Gov Virginia
  • US Gov Arizona

Server-side encryption versus Azure disk encryption

Azure Disk Encryption leverages the DM-Crypt feature of Linux to encrypt managed disks with customer-managed keys within the guest VM. Server-side encryption with customer-managed keys improves on ADE by enabling you to use any OS types and images for your VMs by encrypting data in the Storage service.

Next steps