Power BI is a powerful business intelligence (BI) tool developed by Microsoft that enables users to connect to multiple data sources, transform raw data into insights, and visualize trends through interactive dashboards.
To build robust, scalable, and secure BI solutions, it’s essential to understand the Power BI architecture — how the various components work together behind the scenes.
🧱 Power BI Architecture Overview
Power BI follows a three-tier architecture:
- Data Layer (Data Sources & Ingestion)
- Modeling Layer (Power BI Desktop)
- Presentation Layer (Power BI Service / Report Consumers)
Each layer interacts to extract, process, and deliver insightful reports.
1️⃣ Data Layer – Data Sources & Ingestion
This layer involves connecting Power BI to various data sources. Power BI supports:
- Databases: SQL Server, Azure SQL, Oracle, MySQL, PostgreSQL
- Cloud Platforms: Azure, AWS, Google BigQuery
- Files: Excel, CSV, XML, JSON
- Web APIs and Services: SharePoint, Dynamics 365, Salesforce, SAP
Power Query (M Language) is used for extracting, transforming, and loading (ETL) data into Power BI.
🔗 Data Connectivity Modes:
- Import: Data is loaded into Power BI’s in-memory engine (faster, supports transformations)
- DirectQuery: Data stays in the source; queries are sent live
- Live Connection: Used with SSAS or Power BI datasets (no modeling inside Power BI)
2️⃣ Modeling Layer – Power BI Desktop
This is where analysts and developers work.
Key Components:
| Component | Description |
|---|---|
| Power Query Editor | Performs data cleansing and shaping |
| Data Model | Relationships between tables, calculated columns, and measures |
| DAX (Data Analysis Expressions) | Used to create calculated fields and measures |
| Relationships | Define how tables are linked (star/snowflake schema) |
| Measures | Calculated aggregations (e.g., Total Sales = SUM(Sales[Amount])) |
This layer is saved as a
.pbixfile, which can be published to the Power BI Service.
3️⃣ Presentation Layer – Power BI Service
Once the report is built in Power BI Desktop, it is published to the Power BI Service (cloud platform). This layer manages:
- Report and Dashboard Sharing
- Workspaces and Apps
- Scheduling Data Refresh
- Row-Level Security (RLS)
- AI and Q&A Visuals
- Dataflows for reusable ETL logic
- Paginated Reports via Power BI Report Builder
🌐 Power BI Gateway
To connect on-premises data sources (like SQL Server) to the Power BI Service, the On-Premises Data Gateway is installed. It acts as a bridge between Power BI in the cloud and local servers.
There are two modes:
- Personal Mode – For individual use (one dataset)
- Standard Mode – For enterprise use (multiple users/datasets)
📦 Power BI Components in Summary
| Component | Description |
|---|---|
| Power BI Desktop | Tool for developing reports and models |
| Power BI Service | Cloud platform for sharing and managing reports |
| Power BI Gateway | Connects on-premises data to Power BI Service |
| Power BI Mobile | View and interact with reports on mobile devices |
| Power BI Report Server | On-premises hosting of Power BI reports |
| Power BI Embedded | Embed Power BI dashboards in apps/web portals |
| Power BI Dataflows | Cloud-based ETL to prepare reusable datasets |
🔐 Security in Power BI Architecture
| Feature | Purpose |
|---|---|
| Azure AD Authentication | Secures user access |
| Row-Level Security (RLS) | Filters data per user role |
| Data Encryption | Protects data at rest and in transit |
| Workspaces | Organize and control access to content |
🔁 Data Refresh & Scheduling
- Import Mode: Supports scheduled refreshes (daily/hourly)
- DirectQuery/Live: Real-time data from the source (depends on source performance)
✅ Final Thoughts
Power BI’s architecture is modular, scalable, and cloud-ready, making it ideal for organizations of all sizes. Understanding the flow from data ingestion to dashboard consumption helps in:
- Building efficient reports
- Securing data properly
- Scaling for enterprise needs
Whether you’re a business analyst, data engineer, or BI developer, knowing the Power BI architecture empowers you to design better, faster, and smarter analytics solutions.
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