Quick Answer
The answer is that the workspace must be assigned to a Premium capacity (P or EM SKU) before customer-managed keys can be enabled. This prerequisite exists because customer-managed keys rely on Power BI’s dedicated reserved capacity infrastructure, which provides the isolated tenant-level encryption control that shared capacity cannot offer. On the Microsoft Power BI Data Analyst PL-300 exam, this concept tests your understanding of how data protection layers work: while Azure Key Vault stores the key, it is the Premium capacity assignment that unlocks the CMK feature, making it a common trap to confuse the key storage service with the capacity requirement. A useful memory tip is to think “Premium first, key later” — without Premium capacity, no amount of key vault configuration will enable CMK, so always check the workspace’s SKU tier before troubleshooting encryption.
This PL-300 practice question tests your understanding of manage and secure power bi. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Your organization is implementing a data security strategy for Power BI. You need to ensure that sensitive data in datasets is protected at rest using customer-managed keys (CMK). What prerequisite must be met?
The workspace must be assigned to a Premium capacity (P or EM SKU).
CMK is only available in Premium capacities.
Azure Purview must be configured for the tenant.
Why wrong: Purview is for governance, not encryption.
The Power BI tenant must be in a shared capacity.
Why wrong: CMK requires Premium capacity.
The organization must use Bring Your Own Key (BYOK) for SQL Server.
Why wrong: BYOK is for SQL Server, not Power BI.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
The workspace must be assigned to a Premium capacity (P or EM SKU).
Option B is correct because Power BI Premium capacity with reserved capacity is required for CMK. Option A is wrong because CMK is not available in shared capacity. Option C is wrong because Azure Key Vault is needed but not sufficient alone. Option D is wrong because Bring Your Own Key (BYOK) is for encryption keys, not CMK.
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.
The workspace must be assigned to a Premium capacity (P or EM SKU).
Why this is correct
CMK is only available in Premium capacities.
Related concept
Read the scenario before looking for a memorised answer.
Azure Purview must be configured for the tenant.
Why it's wrong here
Purview is for governance, not encryption.
The Power BI tenant must be in a shared capacity.
Why it's wrong here
CMK requires Premium capacity.
The organization must use Bring Your Own Key (BYOK) for SQL Server.
Why it's wrong here
BYOK is for SQL Server, not Power BI.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
Identify which PL-300 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Manage and secure Power BI — This question tests Manage and secure Power BI — Read the scenario before looking for a memorised answer..
The correct answer is: The workspace must be assigned to a Premium capacity (P or EM SKU). — Option B is correct because Power BI Premium capacity with reserved capacity is required for CMK. Option A is wrong because CMK is not available in shared capacity. Option C is wrong because Azure Key Vault is needed but not sufficient alone. Option D is wrong because Bring Your Own Key (BYOK) is for encryption keys, not CMK.
Identify which PL-300 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 21, 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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