I tried with the following playbook and its not working. Not sure what I am 
missing here.

  hosts: localhost
  connection: local
  gather_facts: no
  vars_files:
    - vars/azure.yml
  tasks:
    - name: create VM
      azure:
        name: '{{ vm_name }}'
        role_size: '{{ role_size }}'
        image: '{{ image_name }}'
        location: '{{ location }}'
        user: '{{ username }}'
        password: '{{ password }}'
        subscription_id: '{{ subscription_id }}'
        management_cert_path: '{{ certificate_path }}'
        storage_account: '{{ storage_account_name }}'
        virtual_network_name: '{{ virtual_network_name }}'
        wait: yes
      with_items: 
        - { name: "{{ vm_names_list }}" } 
      register : azure

    - name  : Debug Azure output
      debug :
        var : azure

I have mentioned my vm_names_list like this :

vm_names_list:
    - "loferVM123"
    - "loferVM234"

It does not do what I expect. I expected it to create three VMs. But it 
creates only one VM. In the debug output it gives me the items in the list 
but only creates one VM.

This is the debug output:

"virtual_network_name": "myVirtualNetwork"
                },
                "invocation": {
                    "module_args": "",
                    "module_name": "azure"
                },
                "item": {
                    "vm_name": [
                        "loferVM123",
                        "loferVM234"
                    ]
                },
                "public_dns_name": "lofervm175.cloudapp.net"

My variable file:

subscription_id: "ID"
certificate_path: "/path/to/certs/mycert.pem"
image_name: "5112500ae3b842c8b9c604889f8753c3__OpenLogic-CentOS-67-20150815"
storage_account_name: "mystorageacc"
virtual_network_name: "myVirtualNetwork"
username: "user"
password: "password"
vm_name: "Testvm"
vm_names_list:
    - "loferVM123"
    - "loferVM234"
role_size: "Small"
location: "Central US"
data_disk_size: "100"
commitlog_disk_size: "10"

This is the output from azure-cli vm show

data:    DNSName "lofervm234.cloudapp.net"
data:    Location "Central US"
data:    VMName "loferVM234"
data:    IPAddress "10.0.2.6"
data:    InstanceStatus "ReadyRole"
data:    InstanceSize "Small"
data:    Image "5112500ae3b842c8b9c604889f8753c3__OpenLogic-CentOS-67-20150815"
data:    OSDisk hostCaching "ReadWrite"
data:    OSDisk name "loferVM234-loferVM234-0-201510262116050841"
data:    OSDisk mediaLink 
"http://portalvhdskswbj32fl5cx8.blob.core.windows.net/vhds/loferVM234-loferVM234-2015-10-26.vhd";
data:    OSDisk sourceImageName 
"5112500ae3b842c8b9c604889f8753c3__OpenLogic-CentOS-67-20150815"
data:    OSDisk operatingSystem "Linux"
data:    OSDisk iOType "Standard"
data:    DataDisks 0 hostCaching "None"
data:    DataDisks 0 label "loferVM234-loferVM234-loferVM234-0"
data:    DataDisks 0 name "loferVM234-loferVM234-0-201510262116380749"
data:    DataDisks 0 logicalDiskSizeInGB 100
data:    DataDisks 0 mediaLink 
"https://portalvhdskswbj32fl5cx8.blob.core.windows.net/vhds/loferVM234-b73613825dfb0bcb.vhd";
data:    DataDisks 0 iOType "Standard"
data:    DataDisks 1 hostCaching "None"
data:    DataDisks 1 label "loferVM234-loferVM234-loferVM234-1"
data:    DataDisks 1 name "loferVM234-loferVM234-1-201510262117180308"
data:    DataDisks 1 logicalUnitNumber 1
data:    DataDisks 1 logicalDiskSizeInGB 100
data:    DataDisks 1 mediaLink 
"https://portalvhdskswbj32fl5cx8.blob.core.windows.net/vhds/loferVM234-cf18946abcbfe4c8.vhd";
data:    DataDisks 1 iOType "Standard"
data:    ReservedIPName ""
data:    VirtualIPAddresses 0 address "104.43.202.234"
data:    VirtualIPAddresses 0 name "loferVM234ContractContract"
data:    VirtualIPAddresses 0 isDnsProgrammed true
data:    Network Endpoints 0 localPort 22
data:    Network Endpoints 0 name "TCP-22"
data:    Network Endpoints 0 port 22
data:    Network Endpoints 0 protocol "tcp"
data:    Network Endpoints 0 virtualIPAddress "104.43.202.234"
data:    Network Endpoints 0 enableDirectServerReturn false
data:    Network Endpoints 0 idleTimeoutInMinutes 4

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