Quick Answer
The answer is Azure SQL Database and SQL Server. Both are relational database systems that support DirectQuery mode in Power BI, meaning queries are sent directly to the source rather than importing data into the Power BI model. This allows for real-time access to large datasets while leveraging the source’s native query processing capabilities, which is essential when data freshness or volume makes full import impractical. On the PL-300 exam, this question tests your understanding of which data sources can be used in DirectQuery versus Import mode—a common trap is assuming that all cloud or on-premises databases support DirectQuery, but only those with optimized query engines like SQL Server and Azure SQL Database reliably do. A useful memory tip: think of the word “SQL” as standing for “Send Queries Live”—if the source name includes SQL, it’s a strong candidate for DirectQuery.
This PL-300 practice question tests your understanding of prepare the data. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.
Which TWO data sources can be used with DirectQuery mode in Power BI? (Choose two.)
Excel workbook
Why wrong: Excel workbooks only support import mode.
SQL Server
SQL Server supports DirectQuery.
Azure SQL Database
Azure SQL Database supports DirectQuery.
CSV file
Why wrong: CSV files only support import mode.
SharePoint list
Why wrong: SharePoint lists typically use import mode, though limited DirectQuery is available via dataflows.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
SQL Server
SQL Server is correct because it is a relational database that supports DirectQuery mode in Power BI, allowing queries to be sent directly to the source without importing data. This enables real-time access to large datasets while leveraging SQL Server's query processing capabilities.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Excel workbook
Why it's wrong here
Excel workbooks only support import mode.
SQL Server
Why this is correct
SQL Server supports DirectQuery.
Related concept
Read the scenario before looking for a memorised answer.
Azure SQL Database
Why this is correct
Azure SQL Database supports DirectQuery.
Related concept
Read the scenario before looking for a memorised answer.
CSV file
Why it's wrong here
CSV files only support import mode.
SharePoint list
Why it's wrong here
SharePoint lists typically use import mode, though limited DirectQuery is available via dataflows.
Common exam traps
The trap here is that candidates often confuse DirectQuery with Import mode, assuming any data source can be used with DirectQuery, but only relational databases like SQL Server and Azure SQL Database support it, while file-based sources like Excel and CSV do not.
Detailed technical explanation
DirectQuery mode works by translating Power BI DAX queries into native SQL queries sent to the source database via TDS (Tabular Data Stream) protocol. This is ideal for scenarios with large data volumes that change frequently, such as operational dashboards, but it imposes limitations like a 1-million-row limit on result sets and no support for time intelligence functions that require data caching.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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.
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FAQ
Prepare the data — This question tests Prepare the data — Read the scenario before looking for a memorised answer..
The correct answer is: SQL Server — SQL Server is correct because it is a relational database that supports DirectQuery mode in Power BI, allowing queries to be sent directly to the source without importing data. This enables real-time access to large datasets while leveraging SQL Server's query processing capabilities.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which TWO of the following are valid data source types in Power BI that support DirectQuery? (Select TWO.)
mediumWhy A: Snowflake is a cloud-based data warehouse that supports DirectQuery in Power BI, allowing queries to be sent directly to Snowflake without importing data into Power BI's in-memory engine. This is possible because Snowflake provides a SQL-based interface that Power BI can connect to via its native connector, enabling real-time querying of large datasets.
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Last reviewed: Jun 24, 2026
This PL-300 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PL-300 exam.
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