## TL;DR

Either request a quota increase for the model in that region, or deploy to a different region: azd env set AZURE_AI_DEPLOYMENTS_LOCATION [new-region] followed by azd up. Check current usage first with az cognitiveservices usage list --location [region], and list available models per region with az cognitiveservices model list --location [region] before retrying.

## The error

```text
Bicep deployment fails with model quota or region capacity error
```

## Fix

1. Either request a quota increase for the model in that region, or deploy to a different region: azd env set AZURE_AI_DEPLOYMENTS_LOCATION [new-region] followed by azd up.
   Expected: You get the expected result; the problem is gone.
2. Re-run the original operation and confirm the error is gone.
   Expected: no error, normal output.

## When to use

- You hit this exact error with Azure AI Foundry.
- The symptom matches: Bicep deployment fails with model quota or region capacity error.

## When NOT to use

- A different error message from Azure AI Foundry; the cause here is specific to this error.
- Unrelated Azure AI Foundry issues (different feature, different failure).
- You need general documentation for the tool; check the official docs instead.

## Compatibility

Reported against Azure AI Foundry. Source: https://github.com/microsoft/microsoft-iq-solution-accelerator/blob/HEAD/docs/foundry/DeploymentGuideFoundry.md.

## Variant phrasings

### Bicep deployment fails with model quota or region capacity error

## Why it happens

Deploying an Azure AI Foundry project with azd fails when the Bicep template requests model deployments (e.g. gpt-5-mini at 150K TPM) that exceed the target region's quota or capacity. The deployment errors out on quota even though the template is valid.

## Edge cases

- If your error message differs even slightly, this is probably a different issue; search the exact text.
- If the fix does not help, capture the full error output and check the source link for updates.

## Source

https://github.com/microsoft/microsoft-iq-solution-accelerator/blob/HEAD/docs/foundry/DeploymentGuideFoundry.md