Error creating Power BI Data Gateway connection

Hi extol7 ,

Thank you for reaching out regarding the issue you're facing when trying to establish a Power BI Data Gateway connection to your SQL Server VM in Azure.

Based on the error message indicating that the SQL source doesn't support encrypted connections, it appears that the root cause might be related to encryption settings on your SQL Server. Since you've mentioned that similar connections to other servers are working fine, it suggests that the general configuration and firewall settings are in place, but this specific SQL Server might have different encryption settings.

We would like to thank lbendlin  for helpful suggestion provided as mentioned that in many production environments, encryption might be disabled for performance reasons. This could be the case with your SQL Server. We recommend reaching out to your SQL Server administrators to confirm whether SSL/TLS encryption is enabled on this server.

If encryption is indeed disabled, enabling it should allow the Power BI Data Gateway to establish a secure, encrypted connection, which is a requirement for proper communication between Power BI and SQL Server.

Once the encryption settings are verified or enabled, we recommend testing the connection again through the Power BI Data Gateway to confirm that the issue is resolved.

Please refer the following documentation for detail information: Manage a SQL Server data source - Power BI | Microsoft Learn

I hope this will resolve your issue, if you need any further assistance, feel free to reach out.

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Thankyou.