Is it possible to connect azure pipelines to on premise servers?

You will need to run a deployment agent on-premises if you want to be able to deploy to servers that you have.

https://devblogs.microsoft.com/devops/deploying-to-on-premises-environments-with-visual-studio-team-services-or-team-foundation-server/

With that said, when you ran through the configuration did you setup the local agent you created in a pool? Did you assign the local agent to a build group and deployment group?

Did you follow the steps here: https://docs.microsoft.com/en-us/azure/devops/pipelines/agents/v2-windows?view=azure-devops

Solved:
It's possible.
All you need is a self-hosted agent and a deployment group. In my pipeline build I used the following tasks: MSBuild@1
PublishBuildArtifacts@1
Then in Release Pipeline:
IIS Deployment