Hi,
Azure is built with a combination of hardware, commercially available operating systems (Linux and Windows), and Azure-specific version of Windows. Through the Microsoft Security Development Lifecycle (SDL), all Azure services use FIPS 140-2 approved algorithms for data security because the operating system uses FIPS 140-2 approved algorithms while operating at a hyper scale cloud.
Reference:
https://learn.microsoft.com/en-us/microsoft-365/compliance/offering-fips-140-2
Best regards,
Leon