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

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