A. a physical server failure - An Azure Availability Zone can protect against a physical server failure, but this is not the most severe failure that it can protect against. A data center failure is more severe because it would affect all of the physical servers in the region.
B. an Azure region failure - An Azure region failure is more severe than a data center failure, and an Azure Availability Zone cannot protect against it. If a region fails, all of the Availability Zones in the region will also fail.
C. a storage failure - An Azure Availability Zone can protect against a storage failure, but this is not the most severe failure that it can protect against. A data center failure is more severe because it would affect all of the storage in the region.
Each availability zone is made up of one or more datacenters with independent power, cooling, and networking. So this, in its own doesn't guarantee data center redundancy.
But: Availability zones and their associated datacenters are designed such that if one zone is compromised, the services, capacity, and availability are supported by the other availability zones in the region.
https://docs.microsoft.com/en-us/azure/architecture/high-availability/building-solutions-for-high-availability
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