Azure charges for data transfer between different tenants, even if the resources are located in the same region. This is because:

Each Azure AD tenant is treated as a separate security and billing boundary. When data/traffic moves from one tenant to another (e.g., downloading a restore point from Tenant A to a VM in Tenant B), Azure treats this as egress traffic, similar to data going to the internet or an external network.

Therefore, Standard Data Transfer Out charges apply. However, if the data transfer occurs within the same tenant and same region, Azure does not charge for that traffic.

This is considered intra-region, intra-tenant traffic, which is free.

Please refer this document form more information: https://azure.microsoft.com/en-us/pricing/details/bandwidth/

https://learn.microsoft.com/en-us/azure/cost-management-billing/manage/manage-billing-across-tenants

• Same region + same tenant = No data transfer charge

• Same region + different tenants = Charged as outbound data transfer

This is because Azure treats cross-tenant traffic as external, regardless of physical proximity.