Can Private Azure SQL Server connect to Fabric with cloud connection?

[ShairaiAli]

Can Private Azure SQL Server connect to Fabric with cloud connection by enabling "This connection can be used with on-premise data gateways and VNet data gateways"?

After enabling this, it stills shows error like "Unable to create connection for the following reason: We could not access the data source. Please make sure you have permission to access the data source and that your credentials are correct

Details: Reason: An instance-specific error occurred while establishing a connection to SQL Server. Connection was denied since Deny Public Network Access is set to Yes (https://docs.microsoft.com/azure/azure-sql/database/connectivity-settings#deny-public-network-access). To connect to this server, use the Private Endpoint from inside your virtual network (https://docs.microsoft.com/azure/sql-database/sql-database-private-endpoint-overview#how-to-set-up-p...). Please have this information handy if you choose to create a support ticket."

[v-agajavelly]

Hi @ShairaiAli ,

It’s been a little while, so I just wanted to check in one last time. Were you able to get chance with the VNet Data Gateway as discussed earlier as suggested?

Since we haven’t heard back, and following the Microsoft Fabric Community Forum guidelines, we’ll go ahead and close this thread for now.

If you're still exploring solutions or need help with anything else in the future, please feel free to create a new post  we’re always here to help.

Regards,
Akhil.

[ShairaiAli]

Sorry for the delay.

I already tested with on-premises data gateway as well as VNet gateway. Both worked.

If you have tutorial related to that option, kindly send.

[v-agajavelly]

Hi @ShairaiAli ,

Following up once more to see if you had a chance to try the setup with the VNet Data Gateway as discussed earlier. Just checking if everything is working smoothly now or if you're still facing any issues. happy to assist if there's anything else you need.

Regards,
Akhil.

[v-agajavelly]

Hi @ShairaiAli ,

Just wanted to check in did you get a chance to work on this. Let me know if the steps above helped or if you ran into anything along the way. Happy to help further if needed.

Thanks,
Akhil.

[v-agajavelly]

Hi @ShairaiAli 

Thanks for the follow-up happy to clarify this.

The checkbox
“This connection can be used with on-premises data gateways and VNet data gateways”
does NOT make the cloud connection itself use a gateway.

Instead, it simply makes the connection eligible to be reused in gateway-based scenarios like in a Dataflow or Dataset that's configured to run through a VNet Data Gateway or On-premises Data Gateway.

In your case:

Since your Azure SQL Server has
Deny Public Network Access = Yes,
you must use a VNet Data Gateway to connect successfully. Checking that box allows the same connection to be assigned to the gateway. But it won’t bypass the private endpoint restriction or make the cloud connection work on its own.

1. Deploy a VNet Data Gateway into the same virtual network where your Azure SQL Server private endpoint lives.
   🔗 Setup guide here
2. In Fabric, go to Manage Gateways assign your connection to this gateway.
3. Make sure the checkbox is checked (as you’ve done), so the connection is allowed to be used in this gateway scenario.
4. Use the gateway-connected dataflow or dataset it will now connect securely via the private endpoint

If this response helps, consider marking it as “Accept as solution” and giving a “kudos” to assist other community members.

Thank's,
Akhil.

[ShairaiAli]

Sorry for the delay.

Can you provide a tutorial for that option?

[v-agajavelly]

Hi @ShairaiAli ,

Here’s a helpful Microsoft tutorial that explains how this setting works in the context of Power BI and Fabric gateways:
Add or remove a gateway data source - Power BI | Microsoft Learn

Additionally, for a deeper dive into setting up and using VNet Data Gateways, here’s the direct setup guide.
VNET Data Gateway for Fabric and Power BI is now Generally Available | Microsoft Fabric Blog | Micro...

Regards,
Akhil.

[ShairaiAli]

Not using "Cloud" connection.

[v-agajavelly]

Hi @ShairaiAli 

I’ve tested this thoroughly and wanted to share a clear answer based on my findings.

I tried connecting a private Azure SQL Server with "Deny Public Network Access = Yes" using the Fabric "Cloud" connection type and enabled the option "Allow this connection to be used with either on-premises data gateways or VNet data gateways."

Unfortunately, this does NOT allow the Cloud connection to work with a private endpoint. It still fails with the error:

"Connection was denied since Deny Public Network Access is set to Yes..." If your Azure SQL Server is private (no public access), then. Cloud connection will not work, even with that checkbox enabled. You must use either.

• VNet Data Gateway (preferred for cloud-native secure access), or
• On-premises Data Gateway (if accessible from your network)

What that checkbox actually does. The checkbox. Allow this connection to be used with either on-premises data gateways or VNet data gateways. only means the same connection can be reused if you switch to a gateway connection. It doesn’t make the Cloud connection use the gateway.

_________________________________________________________________________________________________________________________
If this post helps, then please give us ‘Kudos’ and consider Accept it as a solution to help the other members find it more quickly.

Thank you,
Akhil.

[ShairaiAli]

Thank you for your response.

Can you explain the meaning of this (taken from documentation) - 

"Allow cloud connection usage on gateway

At the bottom of the connection creation dialog a new setting with the label This connection can be used with on-premise data gateways and VNet data gateways is present. Checking the box for this setting enables you

When the setting is left unchecked for the evaluation of a Fabric item that uses a gateway, the evaluation fails as the shareable cloud connection doesn't have the permissions to be used in the context of a gateway evaluation. In contrast, when the setting is checked the shareable cloud connection can be used by gateway based evaluations."

Also, do you have any tutorial or use case related to that option?

[suparnababu8]

Hi @ShairaiAli 

Yes, we can do it by using  Vet Data gateway. Please read this blog Fabric Connectivity Series Part #2 - Inbound SQL D... - Microsoft Fabric Community it might helps you to reolve your issue.

Thank you!

Did I answer your question? Mark my post as a solution!

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[ShairaiAli]

Thank you for your response. But, I want to know with Cloud (third connection type in Fabric) connection. Will private Azure SQL Server connect using that by enabling "Allow this connection to be utilized with either on-premises data gateways or VNet data gateways."?

I already tested with on-premises data gateway as well as VNet gateway. Both worked.

If not worked with that option (Allow this connection to be utilized with either on-premises data gateways or VNet data gateways.) then kindly tell for what use this option is for?