Fabric update: you need to set up a cloud connection now next to data source credentials?

[eurenergy]

Hi all,

We are currently still in the transition from just using Power BI to using Fabric.

That is why we still have a workspace with just power bi reports and semantic models, and a workspace which uses fabric items, all under the same tenant.

I set up a connection to AzureDataLakeStorage in the Fabric workspace.

After setting this up, all my reports in my Power BI workspace which used AzureDataLakeStorage failed. When looking into the settings of the semantic models of the Power BI workspace, I had to set up a  cloud  connection for each semantic model which used Fabric.

Why is Fabric/Power BI forcing me to use the connection I set up in the Fabric workspace for all my Power BI reports now?

[andrewsommer · Accepted solution]

This behavior is due to how Microsoft Fabric handles data connectivity and security context across the tenant when a Fabric-enabled workspace is introduced. Here’s why you’re experiencing this:

1. Unified Data Connectivity Model in Fabric

When you set up the Azure Data Lake Storage (ADLS) connection in your Fabric workspace, Fabric treats it as the default cloud connection for your entire tenant (or at least for workspaces within the same capacity). Since Fabric introduces a unified data access model, Power BI now recognizes this Fabric connection as the preferred connection method for ADLS.

1. Cloud Connection Enforcement for Fabric-Enabled Workspaces

Fabric workspaces use cloud connections for external storage sources, such as ADLS Gen2. When Fabric detects an existing ADLS connection, it forces any dependent semantic models (even in traditional Power BI workspaces) to align with this centralized Fabric connection.

• Your original Power BI workspace did not have this enforcement before, because it wasn't Fabric-enabled.
• However, once a Fabric connection is set up, Power BI workspaces must conform to Fabric’s data access model, requiring a cloud connection setup for each semantic model.

1. Security & Governance Considerations

Fabric centralizes data governance, so Microsoft enforces this model to:

• Ensure that all data access through ADLS is managed under Fabric’s governance and security policies.
• Avoid conflicting authentication mechanisms (e.g., previously, your Power BI workspace might have had direct ADLS access via service principal or user credentials, but Fabric enforces access via cloud connections).

1. Possible Solutions or Workarounds

1. Manually configure cloud connections for all affected semantic models in your Power BI workspace. This aligns them with Fabric’s new model.
2. Evaluate workspace migration – if your goal is to transition fully to Fabric, consider moving all Power BI assets to Fabric workspaces.
3. Use different capacities – If you want to separate Power BI’s behavior from Fabric’s, ensure your Power BI workspaces are in a non-Fabric capacity (though this might not always be feasible).

Please mark this post as solution if it helps you. Appreciate Kudos.