Power BI Embedded Proxy models requires all related models to reside in premium workspaces

[farhanch]

I recently started getting this error in power bi embedded. My Embedded code work fine, if i run a single dataset report (Semantic Model A<-Report A), but i run a report B which is point to dataset A (Semantic Model A<-Report B), i get following error. 

                                | -> Report A  (this one works)
Semantic Model A--|
                                | -> Semantic Model B -> Report B (This one does not work)

All these reports are in Power BI Premium workspace. 

SEVERE: Error: 403 Forbidden:

"error":

{

"code":"InvalidRequest",

"message":"Generating embed token for reports with proxy models requires all related models to reside in premium workspaces"

}

[v-sdhruv]

Hi @farhanch  ,
Just wanted to check if you had the opportunity to review the suggestion provided?
If the response has addressed your query, please accept it as a solution  so other members can easily find it.
Thank You

[v-sdhruv]

Hi @farhanch  ,
Just wanted to check if you had the opportunity to review the suggestion provided?
If the response has addressed your query, please accept it as a solution  so other members can easily find it.
Thank You

[v-sdhruv]

Hi @farhanch  ,
Just wanted to check if you had the opportunity to review the suggestion provided?
Thank You @Nasif_Azam and @Poojara_D12  for your detail explanation to the query.
If the response has addressed your query, please accept it as a solution  so other members can easily find it.
Thank You

[Poojara_D12]

Hi @farhanch 

The error you're encountering in Power BI Embedded—403 Forbidden: Generating embed token for reports with proxy models requires all related models to reside in premium workspaces—is related to how Power BI handles composite models (also known as proxy models). In your case, Report B is built on Semantic Model A, but the system treats this as a proxy model relationship. When embedding such reports, Power BI requires all involved semantic models (both the original and any referenced ones) to be located in Power BI Premium workspaces and within the same tenant. While Report A works fine because it’s directly tied to the base dataset (Semantic Model A), Report B fails because it's built on top of Semantic Model A through a proxy connection, and Power BI enforces stricter rules for embedding those.

To resolve this issue, ensure that:

Both Semantic Model A and the dataset used in Report B (if different or derived) are in Premium workspaces.

All referenced datasets and reports are in the same tenant (embedding across tenants isn't supported for proxy models).

If Semantic Model B is a composite model built from another dataset, it must also reside in a Premium workspace.

In short, for embedding to work with composite or proxy models, all involved semantic models must be Premium-backed and reside in Premium workspaces. Double-check your workspace configurations and move any non-premium datasets into Premium capacity to fix the issue.

[Nasif_Azam · Accepted solution]

Hey @farhanch ,

You're seeing this error message:

403 Forbidden: 

"Generating embed token for reports with proxy models requires all related models to reside in premium workspaces"

This issue typically appears when you attempt to embed a report that connects to a semantic model located in a different workspace, creating a proxy model scenario. Even though all your workspaces are in Premium capacity, this error still occurs due to how Power BI handles model dependencies in embedded environments.

This error is triggered because:

• Report B connects to a proxy model (a dataset that references another dataset in a different workspace).

• Embedding scenarios require that all related datasets and reports live in Premium capacity.

• The service principal or user used for embedding must have the appropriate permissions across all workspaces involved.

Fix the Issue

1. Double-Check Workspace Capacity

Make sure both workspaces (the one with the original dataset and the one with the report) are assigned to Premium capacity:

• Go to each workspace’s settings.

• Verify that they are explicitly listed under a dedicated Premium capacity, not just utilizing Pro or shared capacity.

2. Avoid Using Proxy Models in Embedded Scenarios

Power BI Embedded doesn't work well with proxy models. Instead, you should:

• Option A: Move Report B into the same workspace as Semantic Model A to remove cross-workspace references.

• Option B: Re-publish Semantic Model A into the same workspace as Report B so that the report connects directly to a local dataset.

3. Consider Composite Models as an Alternative

If your scenario requires using multiple models:

• Build a composite model instead of a live connection.

• Composite models can combine imported and DirectQuery data and are supported in Premium workspaces for embedding, provided all access permissions are correctly configured.

Recommended Actions

• For a quick resolution, keep both the dataset and report in the same Premium workspace.

• In the long term, design your embedded architecture to avoid proxy datasets and consolidate related assets into shared workspaces for more predictable performance and security.

If you found this solution helpful, please consider accepting it and giving it a kudos (Like) it’s greatly appreciated and helps others find the solution more easily.

Best Regards,
Nasif Azam