Hello,
Check out https://learn.microsoft.com/en-us/universal-print/fundamentals/universal-print-connector-how-many-printers so that you know how which size of the VM you need to host your connector server.
The Connector Server is basically just another Windows Printserver so it has to be on the same network as the printers.
If you have printers in completely separate networks then you would have to have a connector server in each network.
The other option is again, UP Ready printers which does not need the connector at all and connect directly to Azure.
Check with your printer vendor if there are any firmware updates for your printer that makes them UP Ready, the more of us asking the vendors hopefully will put more pressure on them to release firmwares supporting UP nativly 🙂
All the best,
Andreas