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I am trying to read messages from a service bus queue using logic app. I do not find any documentation on how the logic app will scale based on the number of messages in the queue. Any help or pointer very much appreciated.

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Right now, the answer is...it just does. Meaning, unless you are using a singleton LogicApp, Azure will spin up as many LogicApp instances as needed.

In other words, yes, it scales based on demand using any Trigger, not just Service Bus.

Consequently, there is no built in way to limit the number of instances.