Local Gateway Cannot create in Azure

To create and link the Azure On-premises data gateway resource, sign in to Azure with the same account and subscription used to install/register the gateway; being an added Gateway Admin alone does not satisfy this creation requirement.^1^

Create the Azure gateway resource

1. Ask the account that registered the gateway installation to sign in to the Azure portal.
2. Search for On-premises data gateways and select Create.
3. Select:
   • The subscription associated with the registration account.
   • The required resource group.
   • The same Region used when the local gateway was registered.
   • The corresponding gateway under Installation Name.
4. Select Review + create, then Create.^1^

The installation appears in the list only when:

• The Azure portal account is the same account associated with the gateway installation.
• The account belongs to a single matching Microsoft Entra tenant.
• The Azure resource and gateway installation use the same region.
• The installation is not already linked to another Azure gateway resource.
• A user account—not a service principal—is used.^1^

Gateway Admin versus registration account

Gateway Admin permits managing and updating the gateway, creating connections/data sources, managing users, and controlling connection access. Gateways can have multiple administrators.^2^

However, that co-administrator role is separate from the stricter identity requirement applied when an Azure gateway resource is first created and linked to the local installation. Therefore:

• Managing the existing gateway: An added Gateway Admin is sufficient.
• Creating the linked Azure gateway resource: Use the account that registered the installation.
• Using an already-created Azure gateway resource: Another Gateway Admin can use it where the target service supports that access.

If the original account still receives “Unauthorized User”

Check Azure resource authorization separately. The registration account must also be allowed to create resources in the selected subscription or resource group. If it lacks that permission, have an Azure administrator grant an appropriate role—such as Contributor—through:

Azure portal → Subscription or Resource group → Access control (IAM) → Add role assignment

Allow several minutes for the role assignment to propagate, then retry.^3^

Also check whether gateway installation has been restricted at the tenant level. A Power Platform administrator can review this under Power Platform admin center → Data (preview) → On-premises data gateway → Tenant administration for gateways.^2^

References

1. Connect to on-premises data sources from Azure Logic Apps
2. Manage security roles of an on-premises data gateway
3. Unable to create resources - Microsoft Q&A