I need to create a separate Microsoft Entra ID directory for my BLM project, but tenant creation is unavailable.

wkrasl 40 Reputation points
2025-05-02T13:04:26.38+00:00

I am attempting to resolve a few directory issues, including having only one directory (the default) referring to an obsolete domain name, and having two pay-as-you-go subscriptions and a DevOps project tied to the BLM subscription. In that default directory, I want to separate the subscriptions into different directories. I need that separation because I am in the process of defining security groups for RBAC that appear to be local to the default directory but global within that directory and being applied incorrectly to the two subscriptions which manage different projects. When I go to Entra and attempt to create a new tenant, the choice that I want, "Microsoft Entra ID" is greyed out. "Help me choose" describes the other two choices and both are extreme overkill for my BLM project which is web based bowling league management with only a few dozen teams.

Microsoft Entra ID
Microsoft Entra ID
A Microsoft Entra identity service that provides identity management and access control capabilities. Replaces Azure Active Directory.
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  1. Sakshi Devkante 3,590 Reputation points Microsoft External Staff Moderator
    2025-05-02T13:12:30+00:00

    Hello wkrasl

    As I understand you're unable to add a new Entra ID Tenant and the option to create new tenant is Greyed out.

    This is by design. Earlier Microsoft used to allow users to create multiple tenants. However, our security team recently identified this practice for fraudulent and abusive activities.

    Tenant creation is important for organizations to help manage their instances of Microsoft services. However, allowing employees unrestricted ability to generate free tenants creates liability and security concerns for our customers. It forces bad actors to purchase or activate a trial, which triggers a trade Screen that increases the likelihood of catching bad actors earlier in the chain of tenant creation.

    In order to enhance your organization's security, Microsoft is now limiting this functionality to only those customers who have paid Microsoft Entra P1/P2 license. User's image

    A recent hotfix now restricts tenant creation by requiring paid P1 or greater licenses. If the Entra ID P2 license is a trial license, that is not enough. Customers attempting to create tenants with trial P1+ licenses will also fail in creating tenants.

    You Subscription is linked to your tenant. However, to create new tenant you need to have Microsoft Entra P1/P2 license. These licenses are within your directory where you have your subscription linked to.

    Refer to this guide - https://learn.microsoft.com/en-us/entra/fundamentals/get-started-premium

    Customers in this situation who need a new trial tenant can sign up for a Free Azure Account

    I hope this clarifies things.

    Please remember to "Accept Answer", so that others in the community facing similar issues can easily find the answers.

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