How to run AI coding agents in Azure

AI coding agents such as Claude Code, Codex, and OpenCode can run in Azure through virtual machines, Container Apps jobs, self-managed AKS platforms, or Northflank Cloud Harnesses, allowing organizations to keep code, credentials, networking, and access controls within their Azure subscriptions. Azure-hosted agents can use managed identities, Key Vault, RBAC, private endpoints, and Microsoft Foundry to securely access internal services and Claude models while consolidating compute and model costs under Azure billing. The guide outlines a VM-based setup that installs an agent, retrieves Git credentials from Key Vault, and uses tmux for persistent terminal sessions, while noting the administrative burden of patching, credential management, isolation, scaling, and idle costs. Container Apps jobs are positioned for automated batch work, whereas AKS offers flexibility at the cost of operating a custom platform. Northflank Cloud Harnesses provide an alternative by running isolated microVM workspaces on a managed AKS cluster in the customer’s Azure subscription, supporting multiple agent tools, persistent workspaces, web terminal and SSH access, repository integration, and collaborative access. Harnesses can also connect Claude Code to Microsoft Foundry, retain source code and workspaces within Azure under BYOC configurations, and access private databases or services when virtual network and security settings allow.

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