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Connecting to Data Sources

Bringing Your Data In

Before you can create any charts or dashboards, you first need to feed Power BI some data. This is the starting point for any analysis. Think of Power BI as a kitchen and your data as the ingredients. You can't cook anything until you bring the groceries in from the store.

Power BI is powerful because it can connect to a huge variety of data sources. Whether your data lives in a simple spreadsheet on your desktop or a massive database in the cloud, you can likely pull it into Power BI.

Power BI allows users to import data from multiple sources, including Excel, SQL databases, cloud services, and APIs.

Connecting to Files

The most common starting point for many people is a simple file, like an Excel spreadsheet. This is a straightforward process. In Power BI Desktop, you'll use the Get Data button, which opens up a world of connection options.

For an Excel file, you simply select Excel Workbook, navigate to your file, and open it. Power BI will then show you all the worksheets and tables within that workbook. You select the ones you need, and Power BI establishes a link to that data. It's important to know that Power BI doesn't alter your original file. It just reads from it. The same process works for other common file types, like comma-separated values (CSV) or text files.

A reliable connection is key. If you move or rename your source file, Power BI will lose the path and won't be able to refresh the data until you update the connection.

Connecting to Databases

For larger, more structured data, you'll often connect to a database, such as a SQL Server, Oracle, or PostgreSQL database. These are the workhorses of business data storage. Connecting to them is similar to connecting to a file, but you'll need a bit more information, like the server's name and potentially your login credentials.

When connecting to a database, Power BI gives you two primary options for how it gets the data: Import and DirectQuery.

Connection TypeHow it WorksBest For
ImportCopies the data into your Power BI file.Smaller datasets, fast performance.
DirectQueryConnects live to the database; no data is copied.Very large datasets, real-time data needs.

Import is generally faster for reporting because the data is stored right inside your Power BI file. DirectQuery is great when you're working with massive amounts of data that wouldn't fit in an imported model, or when you need your reports to show the most up-to-the-minute data.

Connecting to Online Services

So much of our data now lives online. Power BI makes it easy to connect to a wide range of online services, from marketing platforms like Google Analytics to sales tools like Salesforce and cloud platforms like Microsoft Azure.

Power BI has built-in connectors for these services. Instead of needing a server address, you'll typically just sign in with your username and password for that service. Power BI handles the rest, pulling in predefined sets of data. This makes it incredibly fast to start analyzing your cloud data without any complex setup.

Lesson image

To get started, try connecting to a data source you already have. A simple Excel file with a few columns of data is a perfect place to practice.

Quiz Questions 1/4

What is the primary feature in the Power BI Desktop interface used to begin the process of connecting to a new data source?

Quiz Questions 2/4

A marketing manager needs to create a Power BI report using data from a massive, multi-terabyte database that is updated continuously. The report must reflect these changes in near real-time. Which data connectivity mode is the most appropriate choice?