Fabric Data Warehouse

Hello,

I have a few questions about the Fabric Data Warehouse. 

1. Is the Fabric Data Warehouse using SQL Server or Parquet files?

2. Is the Fabric Data Warehouse compatible with SQL Server of Azure SQL Database?

3. When would one use a Fabric Data Warehouse instead of Azure SQL Database?  I currently use Azure SQL Databases but my data is not very large.

Thank You,

Michael