The answer is Import mode with an on-premises data gateway and DirectQuery mode with an on-premises data gateway. Both modes require the gateway to securely bridge the Power BI service with your on-premises SQL Server, translating cloud-based queries into native SQL commands without moving data to the cloud. The key technical distinction is that Import mode caches a snapshot of the data, while DirectQuery mode executes live queries against the source, but both rely on the gateway for connectivity. On the PL-300 exam, this question tests your understanding of gateway necessity versus mode behavior—a common trap is assuming DirectQuery can bypass the gateway or that Import mode works without one. Remember the memory tip: "Gateway for any on-prem connection, regardless of mode; the mode only changes how data is stored or queried."
PL-300 Prepare the data Practice Question
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 of the following are valid options when connecting to an on-premises SQL Server database from Power BI service? (Select TWO.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
DirectQuery mode with an on-premises data gateway
Option A is correct because DirectQuery mode in Power BI service requires an on-premises data gateway to translate cloud-based queries into native SQL queries against the on-premises SQL Server. The gateway acts as a secure bridge, enabling real-time query execution without moving data to the cloud.
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.
✓
DirectQuery mode with an on-premises data gateway
Why this is correct
DirectQuery also requires a gateway for on-premises sources.
Related concept
Read the scenario before looking for a memorised answer.
✗
Using a SharePoint Online list connector pointing to SQL Server
Why it's wrong here
SharePoint connector is for SharePoint lists, not SQL Server.
✗
DirectQuery using cloud credentials without a gateway
Import mode can use gateway to connect to on-premises SQL Server.
Related concept
Read the scenario before looking for a memorised answer.
✗
Scheduling refresh in Power BI Desktop
Why it's wrong here
Scheduling refresh is a service feature, not in Desktop.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse 'connection mode' (DirectQuery vs. Import) with 'authentication method' (cloud credentials vs. gateway), mistakenly thinking DirectQuery can bypass the gateway for on-premises sources.
Detailed technical explanation
How to think about this question
The on-premises data gateway uses a secure outbound connection from the gateway to Azure Service Bus, eliminating the need to open firewall ports. In DirectQuery mode, each visual interaction sends a query through the gateway to SQL Server, which can introduce latency if the gateway or network is slow. Import mode, by contrast, caches data in the Power BI service and uses the gateway only during scheduled refresh intervals.
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 cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
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: DirectQuery mode with an on-premises data gateway — Option A is correct because DirectQuery mode in Power BI service requires an on-premises data gateway to translate cloud-based queries into native SQL queries against the on-premises SQL Server. The gateway acts as a secure bridge, enabling real-time query execution without moving data to the cloud.
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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