Analytics, Microsoft Certification, PL-300

Change Data Source Settings (including Credentials & Privacy Levels) (PL-300 Exam Prep)

 
This post is a part of the PL-300: Microsoft Power BI Data Analyst Exam Prep Hub; and this topic falls under these sections: 
Prepare the data (25–30%) 
   --> Get or connect to data 
      --> Change Data Source Settings, including Credentials & Privacy Levels

Note that there are 10 practice questions (with answers and explanations) at the end of each section to help you solidify your knowledge of the material. Also, there are 2 practice tests with 60 questions each available on the hub below the exam topics section.

Managing data source settings is a core responsibility of a Power BI Data Analyst and a frequently tested skill on the PL-300: Microsoft Power BI Data Analyst exam. This topic focuses on understanding how Power BI connects to data, how credentials are stored and updated, and how privacy levels affect data combination and security.

On the exam, you’re rarely asked where to click. The emphasis will likely be on conceptual understanding, decision-making, and troubleshooting. You’re likely to be tested on things like what happens when credentials are wrong, why a refresh fails, or how privacy levels affect query behavior.

What Are Data Source Settings in Power BI?

Data source settings define how Power BI authenticates, accesses, and combines data from one or more sources. These settings exist at two primary levels:

  • Power BI Desktop (development and modeling)
  • Power BI Service (publishing, refresh, and sharing)

Key components include:

  • Authentication credentials
  • Privacy levels
  • Data source permissions
  • Refresh behavior

Managing Credentials

What Are Credentials?

Credentials determine who Power BI is when it connects to a data source. If credentials are invalid, expired, or mismatched between environments, refreshes will fail.

Common Authentication Types (Exam-Relevant)

  • Windows authentication
    • On-premises SQL Server
    • Often paired with gateways
  • Database authentication
    • SQL login stored in Power BI
    • Independent of user identity
  • Microsoft Entra ID (OAuth)
    • Cloud sources (Azure SQL, Power BI datasets)
    • Most common for Power BI Service
  • Anonymous
    • Public web data
    • Rare in enterprise scenarios

Where Credentials Are Managed

In Power BI Desktop

  • File → Options and settings → Data source settings
  • Credentials are stored locally
  • Used during development and testing

In Power BI Service

  • Managed per dataset
  • Required for scheduled refresh
  • Often paired with a gateway for on-premises data

📌 Exam tip:
Credentials in Desktop do not automatically carry over to the Power BI Service.

Updating or Changing Credentials

You may need to update credentials when:

  • Passwords expire
  • Data sources move environments
  • Ownership of a dataset changes
  • Refresh failures occur after publishing

On the exam, expect scenarios like:

“A dataset refresh fails after being published. It worked in Power BI Desktop.”

The likely solution:

  • Update credentials in Power BI Service
  • Configure or reconfigure the gateway

Understanding Privacy Levels

Privacy levels control how Power BI isolates data sources when combining data to prevent unintended data leakage.

The Three Privacy Levels

Public

  • Data is publicly available
  • Lowest level of isolation
  • Examples: public websites

Organizational

  • Internal company data
  • Can be shared within the organization
  • Common for corporate databases

Private

  • Highly sensitive data
  • Strict isolation
  • Cannot be freely combined with other sources

Why Privacy Levels Matter

When Power BI combines multiple data sources:

  • It enforces privacy isolation
  • It may block query folding
  • It may require additional processing

📌 Key exam concept:
Privacy levels affect data combination behavior, not just security.

Privacy Levels and Query Folding

Privacy levels can:

  • Prevent Power BI from pushing transformations back to the source
  • Force local evaluation of queries
  • Reduce performance

Example:

  • Combining a Private SQL database with a Public web source may prevent query folding.

📌 Exam takeaway:
Privacy settings can impact performance, not just access.

The “Ignore Privacy Levels” Setting

Power BI Desktop allows you to:

  • Ignore privacy levels (for development or testing)

⚠️ Important for the exam:

  • This setting does not apply in Power BI Service
  • Service refresh always enforces privacy levels

Common Exam Scenarios and What They’re Testing

Scenario 1: Refresh Fails in Service

Tests:

  • Understanding of credential scope
  • Knowledge of service-side configuration

Correct thinking:

  • Credentials must be set in the Power BI Service
  • Gateway may be required

Scenario 2: Combining Multiple Data Sources

Tests:

  • Privacy level understanding
  • Data leakage prevention

Correct thinking:

  • Choose appropriate privacy levels
  • Understand impact on query folding

Scenario 3: Dataset Ownership Changes

Tests:

  • Credential reassignment
  • Dataset security awareness

Correct thinking:

  • Credentials may need to be re-entered
  • Refresh ownership matters

Key Exam Takeaways

For the PL-300 exam, remember:

  • Credentials define who Power BI is when accessing data
  • Desktop and Service credentials are separate
  • Privacy levels control data isolation
  • Privacy levels affect data combination and performance
  • Ignoring privacy levels works only in Desktop
  • Refresh failures often point to credential or gateway issues

If you understand why Power BI behaves the way it does with credentials and privacy, you’ll answer these questions confidently—even when the wording is tricky.

Practice Questions

Go to the Practice Exam Questions for this topic.

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