The correct answer is to install and configure an on-premises data gateway, then set up a scheduled refresh. This is necessary because the on-premises SQL Server database resides behind a corporate firewall, and the Power BI service cannot directly connect to it without a gateway to bridge the cloud and local network. Even though the CSV file is hosted in SharePoint Online, the dataset combines both sources, so the gateway is mandatory for the SQL Server component; without it, the scheduled refresh will fail for the entire dataset. On the PL-300 exam, this scenario tests your understanding of hybrid data connectivity—a common trap is assuming a cloud source like SharePoint eliminates the need for a gateway, but any on-premises source in the mix requires it. Remember the memory tip: “One on-prem source, one gateway required.”
PL-300 Prepare the data Practice Question
This PL-300 practice question tests your understanding of prepare the data. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
You are a data analyst for a financial services company. You have a Power BI dataset that combines data from two sources: a CSV file in SharePoint Online and an on-premises SQL Server database. The CSV file contains exchange rates that are updated daily. The SQL Server database contains transaction data. You need to ensure that the dataset can be refreshed automatically in the Power BI service. The CSV file is updated at 6:00 AM daily, and the SQL Server database is updated continuously. You have already published the report. What should you do to enable automated refresh?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Install and configure an on-premises data gateway, then set up a scheduled refresh.
Option C is correct because the on-premises SQL Server database requires an on-premises data gateway to bridge the Power BI service with the local network. Even though the CSV file is in SharePoint Online, the dataset combines both sources; the gateway is mandatory for the SQL Server component. Without it, scheduled refresh cannot access the on-premises data, and the dataset will fail to refresh automatically.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Use Power Automate to refresh the dataset after the CSV is updated.
Why it's wrong here
Automation does not solve the gateway requirement.
✗
Enable incremental refresh for the SQL Server table to reduce refresh time.
Why it's wrong here
Incremental refresh is optional and not needed for connectivity.
✓
Install and configure an on-premises data gateway, then set up a scheduled refresh.
Why this is correct
Correct. A gateway is needed for the on-premises SQL Server, and then scheduled refresh works.
Related concept
Read the scenario before looking for a memorised answer.
✗
Configure a scheduled refresh in the dataset settings. The gateway is not required because the CSV file is in SharePoint Online.
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume a gateway is unnecessary because one data source (SharePoint Online) is cloud-based, forgetting that the on-premises SQL Server requires a gateway for any automated refresh in the Power BI service.
Detailed technical explanation
How to think about this question
The on-premises data gateway acts as a secure bridge, using Azure Service Bus to relay queries and results between the Power BI service and the on-premises SQL Server. When a scheduled refresh runs, the Power BI service sends a refresh request to the gateway, which then connects to the SQL Server using Windows authentication or stored credentials. In a hybrid dataset (cloud + on-premises), the gateway is mandatory for the on-premises portion, even if other sources are cloud-based.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Prepare the data — This question tests Prepare the data — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Install and configure an on-premises data gateway, then set up a scheduled refresh. — Option C is correct because the on-premises SQL Server database requires an on-premises data gateway to bridge the Power BI service with the local network. Even though the CSV file is in SharePoint Online, the dataset combines both sources; the gateway is mandatory for the SQL Server component. Without it, scheduled refresh cannot access the on-premises data, and the dataset will fail to refresh automatically.
What should I do if I get this PL-300 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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