What would happen to Application Insight when a Azure region goes down. Will Application insight still be accessible??? as we rely on telemetry data.
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There is no built-in geo-replication for Application Insights. Best practice would be for you to have an instance for each of your application deployments in every region. E.g. if your app runs in East US and in West Europe, also have AppInsights in each region and log to there respectively.
If you need to have your telemetry available in cases of an regional outage as well, I would look into Continuous Export - to a storage account in a separate region.

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