Build a Remote MCP Server with Azure Functions
Scaffold, build, and deploy a remote Model Context Protocol (MCP) server using Azure Functions and the Azure Developer CLI
Lab overview
The Model Context Protocol (MCP) is an open standard that enables AI models to discover and invoke external tools through a consistent interface. By combining MCP with Azure Functions, you can build serverless tool endpoints that any MCP-compatible client can call on demand. In this lab, you scaffold a Python-based MCP server using the Azure Developer CLI, implement a custom tool function with the McpToolTrigger binding, test it locally, deploy it to a Flex Consumption plan, and wire it up to VS Code for live invocation through GitHub Copilot chat.
Objectives
Upon completing this Intermediate level lab, you will be able to:
- Understand the Model Context Protocol (MCP) architecture including hosts, clients, and servers
- Scaffold an MCP server project using azd init from the Azure Functions MCP template
- Write an MCP tool function using the McpToolTrigger binding in Python
- Test the MCP server locally using Azure Functions Core Tools and the MCP Inspector
- Deploy the MCP server to Azure Functions on a Flex Consumption plan using azd up
- Connect VS Code as an MCP client and invoke remote tools through GitHub Copilot chat
Who is this lab for?
This lab is designed for:
- Cloud developers who want to build AI agent tooling using MCP on Azure's serverless platform
- AI/ML engineers looking to expose custom tools to language models through a standardized protocol
- Azure practitioners preparing for AZ-204 who want hands-on experience with Azure Functions triggers and bindings
Verified against your live environment
An automated validation engine inspects your actual resources and configurations as you work. Completion means the task was performed, not multiple choice, real-world proficiency.
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Related reading
Environment
Every lab includes
- Real environment, pre-credentialed
- Automated checks on every step
- Isolated sandbox, auto cleanup
- AI-recommended next steps
Lab curriculum
- 01
Logging into Azure CLI
- 02
Initialize, Build, and Deploy an MCP Server on Azure Functions
1 automated check
- 03
Test the Deployed MCP Server with MCP Inspector
1 automated check
Skills validated
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