The option to configure Service Engine Disc Encryption is available during cloud configuration on NSX Advanced Load Balancer .

Azure disk encryption is used to secure data hosted on or accessed through Azure virtual machines. Azure supports the following disk encryption types:

When a disk encryption set is created, a system-assigned managed identity is created in Azure Active Directory (AD) and associated with the disk encryption set.

The Azure key vault administrator then grants the managed identity permission to perform operations in the key vault.