diff --git a/AGENTS.md b/AGENTS.md
index 2328220b1..03b3471be 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -389,8 +389,8 @@ DEBUG_COLORS=0 DEBUG=* ./awmg --config config.toml
 - `GITHUB_TOKEN` - Second-priority GitHub auth token fallback after `GITHUB_MCP_SERVER_TOKEN`
 - `GITHUB_PERSONAL_ACCESS_TOKEN` - Third-priority GitHub auth fallback
 - `GH_TOKEN` - Lowest-priority GitHub auth fallback (set by GitHub CLI)
-- `GITHUB_API_URL` - Explicit GitHub API endpoint (e.g., `https://copilot-api.mycompany.ghe.com`); used by proxy to set upstream target
-- `GITHUB_SERVER_URL` - GitHub server URL; proxy auto-derives API endpoint: `*.ghe.com` → `copilot-api.*.ghe.com`, GHES → `<host>/api/v3`, `github.com` → `api.github.com`
+- `GITHUB_API_URL` - Explicit GitHub API endpoint (e.g., `https://api.mycompany.ghe.com`); used by proxy to set upstream target
+- `GITHUB_SERVER_URL` - GitHub server URL; proxy auto-derives API endpoint: `*.ghe.com` → `api.*.ghe.com`, GHES → `<host>/api/v3`, `github.com` → `api.github.com`
 - `ACTIONS_ID_TOKEN_REQUEST_URL` - GitHub Actions OIDC token endpoint URL; required for `github-oidc` auth type
 - `ACTIONS_ID_TOKEN_REQUEST_TOKEN` - GitHub Actions OIDC request token; required for `github-oidc` auth type
 - `MCP_GATEWAY_PORT` - Used by environment validation (`--validate-env`) for container port-mapping checks (validated 1-65535); does not override the gateway listen address
diff --git a/docs/AWF_PIPELINE_ENVIRONMENT_VARIABLES.md b/docs/AWF_PIPELINE_ENVIRONMENT_VARIABLES.md
index d689ec9f5..ea67c246a 100644
--- a/docs/AWF_PIPELINE_ENVIRONMENT_VARIABLES.md
+++ b/docs/AWF_PIPELINE_ENVIRONMENT_VARIABLES.md
@@ -136,7 +136,7 @@ The `deriveCopilotApiTarget()` function in the API proxy sidecar (`server.js`) r
 | `https://company.ghe.com` | GHEC | `copilot-api.company.ghe.com` |
 | `https://github.company.com` | GHES | `api.enterprise.githubcopilot.com` |
 
-> **Important**: GHEC uses `copilot-api.<slug>.ghe.com`, **not** `api.<slug>.ghe.com` (the REST API endpoint).
+> **Important**: The Copilot inference sidecar uses `copilot-api.<slug>.ghe.com`, **not** `api.<slug>.ghe.com`. This is distinct from the **mcpg DIFC proxy**, which forwards REST/GraphQL `gh api` calls and therefore targets the REST API host `api.<slug>.ghe.com` (derived from `GITHUB_SERVER_URL`). Do not point the DIFC proxy at `copilot-api.*` — that endpoint does not serve the REST API (e.g. `/rate_limit`).
 
 ---
 
diff --git a/docs/ENVIRONMENT_VARIABLES.md b/docs/ENVIRONMENT_VARIABLES.md
index c6dd4bb92..e1080db2d 100644
--- a/docs/ENVIRONMENT_VARIABLES.md
+++ b/docs/ENVIRONMENT_VARIABLES.md
@@ -104,8 +104,8 @@ When running `awmg proxy`, these variables configure the upstream GitHub API:
 
 | Variable | Description | Default |
 |----------|-------------|---------|
-| `GITHUB_API_URL` | Explicit GitHub API endpoint (e.g., `https://copilot-api.mycompany.ghe.com`); used by proxy to set upstream target | (auto-derived) |
-| `GITHUB_SERVER_URL` | GitHub server URL; proxy auto-derives API endpoint: `*.ghe.com` → `copilot-api.*.ghe.com`, GHES → `<host>/api/v3`, `github.com` → `api.github.com` | (falls back to `api.github.com`) |
+| `GITHUB_API_URL` | Explicit GitHub API endpoint (e.g., `https://api.mycompany.ghe.com`); used by proxy to set upstream target | (auto-derived) |
+| `GITHUB_SERVER_URL` | GitHub server URL; proxy auto-derives API endpoint: `*.ghe.com` → `api.*.ghe.com`, GHES → `<host>/api/v3`, `github.com` → `api.github.com` | (falls back to `api.github.com`) |
 
 ## GitHub Actions OIDC Variables
 
diff --git a/internal/envutil/github.go b/internal/envutil/github.go
index 98dc13b34..19c3e2ca4 100644
--- a/internal/envutil/github.go
+++ b/internal/envutil/github.go
@@ -77,9 +77,13 @@ func DeriveGitHubAPIURL(defaultURL string) string {
 }
 
 // deriveAPIFromServerURL converts a GITHUB_SERVER_URL to the corresponding API endpoint.
-// GHEC tenants (*.ghe.com): https://tenant.ghe.com → https://copilot-api.tenant.ghe.com
+// GHEC data-residency tenants (*.ghe.com): https://tenant.ghe.com → https://api.tenant.ghe.com
 // GitHub.com: https://github.com → https://api.github.com
 // GHES (all others): https://github.example.com → https://github.example.com/api/v3
+//
+// Note: GHEC data residency exposes its REST/GraphQL API at api.<tenant>.ghe.com.
+// This is distinct from copilot-api.<tenant>.ghe.com, which is the Copilot inference
+// endpoint and does not serve the REST API (e.g. /rate_limit) that the DIFC proxy forwards.
 func deriveAPIFromServerURL(serverURL string) string {
 	logGitHub.Printf("Deriving API URL from server URL: %s", sanitize.RedactURL(serverURL))
 
@@ -100,13 +104,18 @@ func deriveAPIFromServerURL(serverURL string) string {
 		logGitHub.Printf("GitHub.com detected, using default API URL: %s", DefaultGitHubAPIBaseURL)
 		return DefaultGitHubAPIBaseURL
 	case strings.HasSuffix(hostname, ".ghe.com"):
+		// If the hostname already starts with "api." (e.g. GITHUB_SERVER_URL was
+		// set to the API base directly), return it as-is to avoid producing
+		// "api.api.<tenant>.ghe.com".
 		var apiURL string
-		if port := parsed.Port(); port != "" {
-			apiURL = fmt.Sprintf("%s://copilot-api.%s:%s", parsed.Scheme, hostname, port)
+		if strings.HasPrefix(hostname, "api.") {
+			apiURL = fmt.Sprintf("%s://%s", parsed.Scheme, parsed.Host)
+		} else if port := parsed.Port(); port != "" {
+			apiURL = fmt.Sprintf("%s://api.%s:%s", parsed.Scheme, hostname, port)
 		} else {
-			apiURL = fmt.Sprintf("%s://copilot-api.%s", parsed.Scheme, hostname)
+			apiURL = fmt.Sprintf("%s://api.%s", parsed.Scheme, hostname)
 		}
-		logGitHub.Printf("GHEC tenant detected, using copilot-api subdomain: hostname=%s, apiURL=%s", hostname, apiURL)
+		logGitHub.Printf("GHEC data-residency tenant detected, using api subdomain: hostname=%s, apiURL=%s", hostname, apiURL)
 		return apiURL
 	default:
 		apiURL := fmt.Sprintf("%s://%s/api/v3", parsed.Scheme, parsed.Host)
diff --git a/internal/envutil/github_coverage_test.go b/internal/envutil/github_coverage_test.go
index 50586a5e0..462d09375 100644
--- a/internal/envutil/github_coverage_test.go
+++ b/internal/envutil/github_coverage_test.go
@@ -30,16 +30,16 @@ func TestDeriveAPIFromServerURL_HTTPSchemeAndEdgeCases(t *testing.T) {
 		{
 			// http scheme is explicitly allowed; schemes other than "http" and
 			// "https" are rejected.
-			// GHEC tenant: prepend "copilot-api." subdomain.
-			name:      "http scheme GHEC tenant derives copilot-api subdomain",
+			// GHEC data-residency tenant: prepend "api." subdomain.
+			name:      "http scheme GHEC tenant derives api subdomain",
 			serverURL: "http://mycompany.ghe.com",
-			expected:  "http://copilot-api.mycompany.ghe.com",
+			expected:  "http://api.mycompany.ghe.com",
 		},
 		{
 			// GHEC tenant with both http scheme and a port number.
 			name:      "http scheme GHEC tenant with port",
 			serverURL: "http://mycompany.ghe.com:8080",
-			expected:  "http://copilot-api.mycompany.ghe.com:8080",
+			expected:  "http://api.mycompany.ghe.com:8080",
 		},
 		{
 			// http scheme is allowed for GHES hosts as well.
diff --git a/internal/envutil/github_test.go b/internal/envutil/github_test.go
index 5a9146381..dce94216b 100644
--- a/internal/envutil/github_test.go
+++ b/internal/envutil/github_test.go
@@ -113,9 +113,9 @@ func TestDeriveAPIFromServerURL(t *testing.T) {
 			expected:  DefaultGitHubAPIBaseURL,
 		},
 		{
-			name:      "GHEC tenant derives copilot-api subdomain",
+			name:      "GHEC data-residency tenant derives api subdomain",
 			serverURL: "https://mycompany.ghe.com",
-			expected:  "https://copilot-api.mycompany.ghe.com",
+			expected:  "https://api.mycompany.ghe.com",
 		},
 		{
 			name:      "GHES uses /api/v3 path",
@@ -125,7 +125,17 @@ func TestDeriveAPIFromServerURL(t *testing.T) {
 		{
 			name:      "GHEC tenant with port",
 			serverURL: "https://mycompany.ghe.com:8443",
-			expected:  "https://copilot-api.mycompany.ghe.com:8443",
+			expected:  "https://api.mycompany.ghe.com:8443",
+		},
+		{
+			name:      "GHEC already-API hostname is returned as-is",
+			serverURL: "https://api.mycompany.ghe.com",
+			expected:  "https://api.mycompany.ghe.com",
+		},
+		{
+			name:      "GHEC already-API hostname with port is returned as-is",
+			serverURL: "https://api.mycompany.ghe.com:8443",
+			expected:  "https://api.mycompany.ghe.com:8443",
 		},
 		{
 			name:      "GHES with port",
@@ -190,7 +200,7 @@ func TestDeriveGitHubAPIURL(t *testing.T) {
 			envAPIURL:  "",
 			envSrvURL:  "https://mycompany.ghe.com",
 			defaultURL: DefaultGitHubAPIBaseURL,
-			expected:   "https://copilot-api.mycompany.ghe.com",
+			expected:   "https://api.mycompany.ghe.com",
 		},
 		{
 			name:       "invalid GITHUB_SERVER_URL falls back to default",
diff --git a/internal/proxy/forward_to_github_test.go b/internal/proxy/forward_to_github_test.go
index 378a06520..e7644b166 100644
--- a/internal/proxy/forward_to_github_test.go
+++ b/internal/proxy/forward_to_github_test.go
@@ -189,21 +189,22 @@ func TestForwardToGitHub_GraphQLPathRouting(t *testing.T) {
 			wantServerPath: "/api/graphql?ref=main&query=foo",
 		},
 		{
-			// GHE Cloud data residency (e.g. copilot-api.sj.ghe.com) has no /api/v3
-			// suffix but the gh CLI sends GraphQL requests to /api/graphql.
-			// forwardToGitHub must forward to base/api/graphql, not base/graphql.
-			name:                "GHE Cloud data residency api/graphql path routes to base/api/graphql",
-			githubAPIURL:        "http://copilot-api.sj.ghe.com",
+			// GHE Cloud data residency exposes its REST/GraphQL API at
+			// api.<tenant>.ghe.com (not copilot-api), so GraphQL lives at /graphql
+			// just like github.com. The gh CLI sends GraphQL requests to /api/graphql
+			// (rewritten GITHUB_GRAPHQL_URL); forwardToGitHub must normalise to base/graphql.
+			name:                "GHE Cloud data residency api/graphql path routes to base/graphql",
+			githubAPIURL:        "http://api.sj.ghe.com",
 			routeToUpstreamHost: true,
 			requestPath:         "/api/graphql",
-			wantServerPath:      "/api/graphql",
+			wantServerPath:      "/graphql",
 		},
 		{
 			name:                "GHE Cloud data residency api/graphql with query string preserves query",
-			githubAPIURL:        "http://copilot-api.sj.ghe.com",
+			githubAPIURL:        "http://api.sj.ghe.com",
 			routeToUpstreamHost: true,
 			requestPath:         "/api/graphql?foo=bar",
-			wantServerPath:      "/api/graphql?foo=bar",
+			wantServerPath:      "/graphql?foo=bar",
 		},
 		{
 			name:           "dotcom-style api graphql path normalises to graphql",
diff --git a/internal/proxy/proxy.go b/internal/proxy/proxy.go
index 127bf79ac..5a43e61f1 100644
--- a/internal/proxy/proxy.go
+++ b/internal/proxy/proxy.go
@@ -342,11 +342,6 @@ func (s *Server) upstreamHost() string {
 	return host
 }
 
-func (s *Server) isGHECDataResidencyHost() bool {
-	host := strings.ToLower(s.upstreamHost())
-	return strings.HasPrefix(host, "copilot-api.") && strings.HasSuffix(host, ".ghe.com")
-}
-
 // forwardToGitHub sends a request to the upstream GitHub API.
 // clientAuth is the Authorization header from the inbound client request;
 // if non-empty it is forwarded as-is, otherwise the configured fallback token is used.
@@ -354,17 +349,13 @@ func (s *Server) forwardToGitHub(ctx context.Context, method, path string, body
 	url := s.githubAPIURL + path
 	pathOnly, query, hasQuery := strings.Cut(path, "?")
 	if IsGraphQLPath(pathOnly) {
-		normalizedPath := strings.TrimSuffix(pathOnly, "/")
 		var graphqlURL string
 		if strings.HasSuffix(s.githubAPIURL, "/api/v3") {
 			// GHES: strip /api/v3, GraphQL lives at /api/graphql
 			graphqlURL = strings.TrimSuffix(s.githubAPIURL, "/api/v3") + "/api/graphql"
-		} else if s.isGHECDataResidencyHost() && strings.HasSuffix(normalizedPath, "/api/graphql") {
-			// GHE Cloud data residency (e.g. copilot-api.sj.ghe.com):
-			// the client already sent /api/graphql — use the same path on upstream
-			graphqlURL = s.githubAPIURL + "/api/graphql"
 		} else {
-			// github.com: GraphQL lives at /graphql
+			// github.com and GHEC data residency (api.<tenant>.ghe.com):
+			// GraphQL lives at /graphql
 			graphqlURL = s.githubAPIURL + "/graphql"
 		}
 		url = graphqlURL