Kristen Womack shares a practical walkthrough for setting up GitHub Copilot coding agent integration with Azure via the azd extension, automating secure configuration and agent access.

Integrating GitHub Copilot Coding Agent with Azure Using the azd Extension

This article outlines how developers can set up the GitHub Copilot coding agent to securely interact with Azure cloud resources. Leveraging the Azure Developer CLI (azd) and its azure.coding-agent extension, manual configuration work is automated for streamlined integration.

Why the azd Extension for Copilot?

Connecting Copilot coding agents to Azure allows them to:

  • Suggest and update infrastructure code
  • Query and monitor Azure resources
  • Enable AI-powered cloud app development

Manual setup typically involves configuring managed identities, role assignments, federated credentials, and GitHub repository settings. The azd extension simplifies this process.

Key Features

  • Automated managed identity creation with configurable Azure RBAC roles.
  • Federated credential setup for passwordless, secure GitHub Actions authentication.
  • GitHub environment variable configuration for Azure credentials.
  • MCP Server integration for Model Context Protocol access.
  • Workflow automation, generating .github/workflows/copilot-setup-steps.yml and creating pull requests with setup instructions.

Prerequisites

  • Install and authenticate Azure Developer CLI (azd)
  • Azure subscription with resource group and identity creation permissions
  • Local clone of the targeted GitHub repository
  • GitHub CLI (gh) installed and authenticated

Installation & Setup

Install or upgrade the extension:

azd extension install azure.coding-agent
azd extension upgrade azure.coding-agent

Configure your repository:

cd <your-github-repository>
azd coding-agent config

Follow the interactive prompts to:

  1. Authenticate Azure and select a subscription
  2. Select the repository
  3. Create or select managed identity
  4. Assign RBAC roles
  5. Generate and push necessary workflow files
  6. Copy MCP JSON configuration to Copilot agent settings

Technical Workflow

Managed Identity:

  • Create/select identity, specify resource group
  • Configure RBAC (default Reader, fully customizable)

Federated Credentials:

  • Setup for passwordless authentication from GitHub Actions
  • OIDC credentials configured under Azure portal -> Managed Identity

Environment Variables:

  • Set in GitHub environment (copilot) for Azure authentication
    • AZURE_CLIENT_ID, AZURE_TENANT_ID, AZURE_SUBSCRIPTION_ID

Workflow Generation:

  • .github/workflows/copilot-setup-steps.yml automates setup and verification

MCP Server Configuration:

  • Copy JSON block to Copilot’s configuration for Azure MCP server integration

Advanced Options

  • Custom RBAC roles via --roles flag
  • Use or create custom branches/remotes via CLI flags
  • Shortcut for existing managed identities

Security Best Practices

  • Least privilege: default Reader role, resource group scope
  • Passwordless auth: OIDC, no GitHub secrets
  • Full audit via Azure logs
  • Compliance via Azure Policy integration
  • Copilot agent access governed by repository write permissions

Use Cases

  • Querying and monitoring Azure resources
  • Infrastructure as code generation (Bicep, ARM templates)
  • Cost optimization and security insights
  • AI-powered workflow automation for cloud development

Troubleshooting

  • Check managed identity roles/scopes for access issues
  • Verify Copilot environment variables and federated credential subjects
  • Ensure workflow files are merged to main for activation

How to Get Involved

  • Report issues and discuss on Azure Developer CLI GitHub
  • Review/contribute to the extension source code
  • Share feedback or enhancement requests via GitHub issues

Summary

The azd extension makes it easy for developers, regardless of project scale, to connect GitHub Copilot coding agents to Azure cloud services securely and efficiently. This means faster, AI-assisted cloud development while maintaining strong identity and security controls.

Related resources:

This post appeared first on “Microsoft Azure SDK Blog”. Read the entire article here