Microsoft Azure Architect Design (AZ-301) Practice Exam 2026 - Free Azure Architect Practice Questions and Study Guide

The correct choice for this question is that virtual network peering enables automatic traffic routing between devices. When virtual networks are peered, they become part of the same network space, allowing resources in different virtual networks to communicate with each other as if they were within the same network. This is particularly useful for managing resources distributed across different geographical regions or subscriptions while ensuring seamless communication.

Virtual network peering allows for low-latency and high-bandwidth communication, as it uses the Azure backbone for routing traffic between the virtual networks. This feature streamlines the setup of communication pathways between resources in different virtual networks without the need for additional configuration like VPN gateways, thus simplifying network architecture.

In contrast, the other choices focus on different aspects of network management. Network Security Groups primarily control inbound and outbound traffic and enforce security rules rather than facilitating traffic routing. The Azure Load Balancer is designed to distribute incoming network traffic across multiple servers to ensure reliability and performance, but it does not by itself enable routing between devices. ExpressRoute provides a private connection between your on-premises networks and Azure, enhancing security and performance, but does not relate to automatic traffic routing within Azure's virtual networks.

Thus, virtual network peering stands out as the feature specifically designed for automatic traffic