Everyone is a strong proponent of strong encryption ~ Dorothy Denning
Azure Disk Encryption is used to encrypt data at rest for both Linux and Windows Virtual Machines.
Both OS and Data disks can be encrypted. Azure Disk Encryption service utilizes DM-Encryption feature of Linux for encryption and Bitlocker to encrypt Windows systems.
Disk Encryption is integrated with Azure Key vault for storing encryption keys. It's a requirement to have Key Vault and VMs in the same region and subscription.