This post is a part of the PL-300: Microsoft Power BI Data Analyst Exam Prep Hub; and this topic falls under these sections:
Manage and secure Power BI (15–20%)
--> Create and manage workspaces and assets
--> Identify When a Gateway Is Required
Note that there are 10 practice questions (with answers and explanations) at the end of each topic. Also, there are 2 practice tests with 60 questions each available on the hub below all the exam topics.
Overview
In Power BI, a data gateway acts as a secure bridge between on-premises data sources and the Power BI service in the cloud. Understanding when a gateway is required—and when it is not—is a core skill assessed in the Manage and secure Power BI section of the PL-300 exam.
This topic focuses less on installing gateways and more on decision-making: recognizing data source locations, connection modes, and refresh requirements.
What Is a Power BI Gateway?
A Power BI gateway is software installed on a local machine or server within a private network. It enables the Power BI service to:
- Refresh data from on-premises sources
- Query on-premises data in real time (DirectQuery or Live connection)
- Maintain secure communication without opening inbound firewall ports
There are two main gateway types:
- On-premises data gateway (standard) – supports multiple users and services
- On-premises data gateway (personal) – single-user scenarios (limited use, not recommended for enterprise)
When a Gateway Is Required
You must use a gateway when both of the following are true:
- The data source is on-premises or in a private network
- The Power BI service needs to access the data after publishing
Common Scenarios That Require a Gateway
1. Scheduled Refresh from On-Premises Data
If a dataset connects to:
- SQL Server (on-premises)
- Oracle, Teradata, SAP
- On-premises file shares
- On-premises data warehouses
…and you want scheduled refresh, a gateway is required.
2. DirectQuery or Live Connections to On-Premises Sources
A gateway is required for:
- DirectQuery to on-premises SQL Server
- Live connections to Analysis Services (SSAS) on-premises
This applies even if no refresh schedule exists, because queries are sent at report view time.
3. On-Premises Dataflows
If a Power BI dataflow connects to on-premises data, a gateway is required to refresh the dataflow.
4. Hybrid Scenarios
If a dataset combines:
- Cloud data (e.g., Azure SQL Database)
- On-premises data (e.g., local SQL Server)
A gateway is still required for the on-premises portion.
When a Gateway Is NOT Required
A gateway is not needed when Power BI can access the data source directly from the cloud.
Common Scenarios That Do NOT Require a Gateway
1. Cloud Data Sources
No gateway is required for:
- Azure SQL Database
- Azure Synapse Analytics
- Azure Data Lake Storage
- SharePoint Online
- OneDrive
- Power BI semantic models
- Dataverse
- Public web data
2. Import-Only Reports Viewed in Power BI Desktop
While working only in Power BI Desktop, no gateway is needed—even for on-premises data—because Desktop connects directly.
A gateway becomes relevant only after publishing.
3. Manual Refresh in Power BI Desktop
If data refresh happens manually in Desktop and the dataset is republished, no gateway is required (though this is not scalable).
Gateway and Connection Mode Summary
| Connection Mode | On-Premises Source | Gateway Required |
|---|---|---|
| Import (Scheduled Refresh) | Yes | Yes |
| Import (Cloud Source) | No | No |
| DirectQuery | Yes | Yes |
| Live Connection (SSAS) | Yes | Yes |
| Dataflows (On-Prem) | Yes | Yes |
| Desktop-only | Yes | No |
Exam-Focused Decision Rules
For the PL-300 exam, remember these rules:
- On-premises + Power BI Service = Gateway
- Cloud source = No gateway
- DirectQuery always needs a gateway if the source is on-premises
- Desktop usage alone does not require a gateway
- Hybrid datasets still require a gateway
Common Exam Traps
- Assuming a gateway is needed for all refresh scenarios
- Forgetting that Azure SQL Database does NOT require a gateway
- Confusing publishing with refresh
- Overlooking gateway needs for dataflows
Key Takeaways
- Gateways are about location, not data size
- They enable secure, outbound-only communication
- The exam tests recognition, not installation steps
- Focus on where the data lives and how Power BI accesses it
Practice Questions
Go to the Practice Questions for this topic.
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