
When you create a Dataverse environment it prompts you to select the region where you want it created. This is the datacenter region and the url of your environment indicates the datacenter regions where it is located e.g. crm4.dynamics.com indicates Europe. The Data Centre region is not the same as the Azure region. Azure actually splits Europe into North Europe and West Europe. So when you create a new Dataverse environment in Europe it will get created in either the North or West Europe Azure region.
The Azure region where your Dataverse environment is provisioned is actually important if you want to use Synapse Link for Dataverse and other Azure services. You may have created a Dataverse environment in Europe but when you try to configure Synapse you are blocked because your Dataverse environment is in a different Azure region to your Synapse Data Lake. Therefore for future proofing I would recommend when you create a Dataverse environment that you create it in your nearest Azure region which in my case this is North Europe.
Unfortunately you cannot select the Azure region when you create a Dataverse environment from the Power Platform Admin center. You can only select the Datacenter Region.
Neither can you select it when you create an environment using the Power Platform for Admins connector.
What you can do is use a PowerShell script to create your environment. There is a PowerShell module called Microsoft.PowerApps.Administration.PowerShell which contains a whole range of functions for querying and interacting with your Power Platform environments. It contains a function called New-AdminPowerAppEnvironment which you can use to create your environment. The example below creates a new environment in the Azure North Europe region.
New-AdminPowerAppEnvironment -DisplayName ‘Demo Region’ -Description 'Joe Gill NE Demo' -ProvisionDatabase -Location 'europe' -RegionName northeurope -EnvironmentSku Sandbox -DomainName $environmentname -LanguageName 1033 -CurrencyName EUR -WaitUntilFinished $true
I would encourage you to use PowerShell to create your environments in your nearest Azure region. Otherwise you could end up with environments in different Azure regions and won’t be able to configure them to use the same Synapse Link for Dataverse Data Lake. You should also get better performance if you use Azure Functions, Logic App, etc to interact with Dataverse and they are all located in the same Azure region.