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Microsoft has released Azure MCP Server 2.0, a stable production-ready update that implements the Model Context Protocol (MCP) to enable AI agents to interact with Azure cloud resources. The release includes 276 tools spanning 57 Azure services, remote self-hosting support for enterprise deployment, hardened security with Managed Identity and OBO flow authentication, sovereign cloud compatibility (Azure US Government and Azure China), and broad IDE/agent platform support including VS Code, GitHub Copilot CLI, and Claude Code. The project is open-source and available via Docker or a VS Code extension.

Microsoft Announces Azure MCP Server 2.0 Stable Release for Enterprise AI Automation