Forum Discussion
Linked Server Authentication Fails
Thank you everyone for your help. I tried all the above solutions, but the problem persisted.
To resolve the issue, I moved all direct SQL connections out of Power BI Desktop and rebuilt them in Power BI Dataflows. so dashboards no longer depend on Power BI Desktop for data access. I then updated each dashboard to use the Dataflow instead of connecting directly to SQL.
Hi mjoseph111
I haven't seen any widespread reports of a similar issue with the latest version, which suggests the behavior likely stems from local environment configurations or recent security hardening in Power BI Desktop's connection engine.
Below are the recommended technical solutions to address this:
1. Transition to OPENQUERY (Most Reliable)
The most effective way to resolve authentication issues between Power BI and Linked Servers is to use the OPENQUERY function. This forces the local SQL Server to manage the remote connection and credential delegation internally, rather than letting the Power BI engine attempt to negotiate the "Double Hop" to the remote node. Syntax: SELECT * FROM OPENQUERY([RemoteServerName], 'SELECT * FROM Database.Schema.Table')
2. Adjust Data Source Encryption Settings
Power BI Desktop has recently prioritized encrypted connections. If your SQL environment uses self-signed certificates or specific encryption protocols, the handshake may fail.
Go to File > Options and settings > Data Source settings.
Select the SQL Server source and click Edit Permissions.
Toggle the "Encrypt Connections" setting or ensure "Trust Server Certificate" is checked.
3. Verify OLE DB Driver Version
Power BI Desktop relies on the drivers installed on your machine. Ensure you are using the Microsoft OLE DB Driver 19 for SQL Server. Older versions may not be fully compatible with the security protocols enforced in the latest Power BI build.
4. Isolate Authentication Type
To determine if the issue is Kerberos/Double-Hop related, test the Linked Server connection using a SQL Server Login (Username/Password) instead of Windows Authentication. If SQL Authentication works, the issue is likely tied to credential delegation permissions in your network.
Official Support Escalation
If these steps do not resolve the issue, you should open an official support ticket:
Visit the Microsoft Fabric Support Portal.
Provide Trace Logs: Go to File > Options and settings > Options > Diagnostics and click "Enable tracing" before reproducing the error.
Detail whether the failure is exclusive to Power BI Desktop or also occurs when the report is published to the Service via a Gateway.
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