service principal power bi service to sql on prem

[ptmk]

Hello! We have an on-prem data gateway and can create connections using basic Authentication.

What is the most secure and supported method of authentication to an on prem sql server in the power bi service for data refreshes? An article for using service principals? Is it more secure? Thanks!
https://learn.microsoft.com/en-us/power-query/connectors/sql-server#summary

Authentication Types Supported

Database/Basic (Username/Password) Windows Organizational account (if the specified server supports it) Service principal

[v-shamiliv]

Hi @ptmk 
I hope this information is helpful. Please let me know if you have any further questions or if you'd like to discuss this further. If this answers your question, please Accept it as a solution and give it a 'Kudos' so others can find it easily.
Thank you.

[v-shamiliv]

Hi @ptmk 
I wanted to check if you had the opportunity to review the information provided. Please feel free to contact us if you have any further questions. If my response has addressed your query, please accept it as a solution and give a 'Kudos' so other members can easily find it.
Thank you

[v-shamiliv]

Hi @ptmk 

May I ask if you have resolved this issue? If so, please mark the helpful reply and accept it as the solution. This will be helpful for other community members who have similar problems to solve it faster.

Thank you.

[v-shamiliv · Accepted solution]

Hi @ptmk 
Thank you for reaching out microsoft fabric community forum.

The most secure and supported way to connect Power BI Service to an on-prem SQL Server is by using a Service Principal with Azure Active Directory (AAD) authentication.

It’s more secure than Basic Auth because it avoids user credentials, supports centralized access control, and scales better in enterprise environments. Just make sure your SQL Server and gateway are configured to support AAD.

If this solution helps, please consider giving us Kudos and accepting it as the solution so that it may assist other members in the community
Thank you.