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Ziyang Liu-MSFT On BEST ANSWER

Based on my knowledge, the pipeline and self-hosted agent communicate through the public network, even if your organization and Azure VM are in the same region. According to this official doc Allowed IP addresses and domain URLs, there are only outbound connections and inbound connections used in different scenarios without any private network mentioned.

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jessehouwing On

No, by default all communication between the agent and Azure DevOps will be routed over public infrastructure.

To tunnel your traffic across private networks, you need to setup ExpressRoute for Azure Devops.