Direct Connectivity in Power BI

Understanding Data Gateways

Learning Outcome

6

Monitor gateway health and troubleshoot failures

5

Manage data sources and access permissions

4

Install and configure a gateway

3

Differentiate between gateway types and modes

2

Understand how gateways work conceptually

1

Explain what a Data Gateway is and why it is required

Power BI Service works in the cloud

Reports are refreshed from datasets

Some data sources are on-premises

Scheduled refresh requires valid connectivity

Students already know:

 Imagine Your report is ready.

Your visuals are perfect.

The cloud asks for the data.

The data refuses to leave

But the data lives here:

  • Inside a company server

  • Behind a firewall

  • On a local machine

 Now imagine a trusted messenger.

  • It stays inside the building.
  • It listens when the cloud asks.
  • It sends data out, never lets the cloud come in.
  • Secure.
  • Controlled.
  • Invisible.

If Power BI Service lives in the cloud:

How does it safely access data
that is locked inside a private network?

The data never moves to the cloud.

The request does.

  • That secure bridge is called a Data Gateway.
  •  Data Gateways let cloud reports talk to on-premises data safely.

The core section explains how gateways work, how to set them up, and how to manage them

Power BI Service cannot directly access on-premises data

Firewalls and security policies block inbound connections

  • Gateways solve this by:

    • Creating outbound-only secure connections

 Data Gateway

  • A Data Gateway is a software agent

  • Installed inside the on-premises network

  • Allows Power BI Service to:

    • Query local data sources

    • Refresh datasets securely

Power BI Service never directly enters the local network

Key Principle

  • Outbound communication only

  • No inbound firewall openings required

Key Principle

Why Data Gateways Are Needed

How Data Gateways Work 

Power BI Service sends a refresh request

Gateway polls the service securely

Gateway connects to local data source

Data is encrypted and sent to Power BI Service

Dataset refresh completes

  •  

  • Credentials are stored securely

  • All traffic is encrypted

Security Insight

Types of Data Gateways in Power BI

  • Used in enterprise and team environments

  • Supports:

    • Multiple users

    • Multiple data sources

    • Shared datasets

  • Installed on a server

  • Used by individual users

  • Limited to:

    • Personal reports

    • Single user scenarios

  • Not suitable for team collaboration
     

  • Used in advanced cloud networking scenarios

  • No local installation required

  • Requires Azure configuration
    Typically outside beginner scope

Installing the On-Premises Data Gateway

Steps

  • Go to Power BI Service

  • Download On-Premises Data Gateway

  • Install on:

    • A server or machine with access to SQL Server

  • Sign in using Power BI account

  • Choose Standard Mode (recommended for teams)
  • Register the gateway
     

Install on a machine that:

  • Is always online
  • Has stable network connectivity

 Configuring Data Sources in Gateway

Steps

  • Go to Manage Gateways​

 

  • Select the installed gateway

Click Add data source

Choose:

  • Data source type:
  • Enter:
  • Server name
  • Database name

Enter credentials

 

  • Test connection
  • Save

Using Gateway with Scheduled Refresh

Gateways enable scheduled refresh for on-prem data

 

Steps

  • Publish report to Power BI Service

  • Go to dataset settings

  • Map dataset to gateway data source

  • Enable scheduled refresh

  • Set frequency and time
     

Monitoring and Maintaining Gateways

Managing Access

  • Control:

    • Who can use gateway

    • Who can add data sources

Power bi Service → Manage Gateway

Prevent unauthorized access

What Happens If a Gateway Goes Offline

Gateway Limitations and Best Practices

Summary

5

4

3

2

1

Monitoring and maintenance ensure reliability

Gateways enable scheduled refresh

Standard mode supports teams and shared datasets

Required only for on-premises sources

Data Gateways securely connect cloud and on-prem data

Quiz

Why is a data gateway required?

A. To store data permanently in the cloud

B. To create dashboards and reports

C. To securely access on-premises data

D. To improve Power BI visual performance

Why is a data gateway required?

A. To store data permanently in the cloud

B. To create dashboards and reports

C. To securely access on-premises data

D. To improve Power BI visual performance

Quiz-Answer