You have the following three versions of an Azure SQL database: Test Production Development You have a dataset that uses the development database as…

Creating a parameter in Power Query is the standard and most efficient method for managing dynamic data sources. You can define parameters for the server and database names and reference them in the source connection step of your queries (e.g., Sql.Database). After publishing the report to the Power BI service, these parameters can be easily modified in the dataset's settings. This allows you to switch the connection from the development database to test or production without needing to edit the report in Power BI Desktop, directly fulfilling the user's requirement.

A. A JSON file would add an unnecessary layer of complexity. You would still need a parameter to read a specific value from the file to use in the data source connection.

C. Creating a query for each server is highly inefficient. It would load data from all three sources into the model, increasing its size and refresh time, rather than switching a single connection.

D. Data source privacy levels manage data isolation between sources, not the connection string itself. The ReplaceValue function modifies data within a column, it cannot be used to change the server name in the source step.

1. Microsoft Learn. (2023). Use parameters to change data sources.

Reference: In the "Create parameters for the data source" section

the documentation explicitly details creating parameters for ServerName and DatabaseName and using them in the Source step of a query. It states

"You can now use these parameters in the data source for any of your queries." This is the core technique described in the correct answer.

2. Microsoft Learn. (2023). Deployment pipelines overview.

Reference: Under the "Deployment rules" section

it explains how parameters are used to configure content for different stages (development

test

production). It states

"You can configure rules in the deployment pipeline to change parameter values... Deployment rules are applied after the content is deployed to the destination stage." This confirms that parameters are the sanctioned mechanism for managing environment-specific connections in the Power BI service.

3. Microsoft Learn. (2023). Deep dive into query parameters and Power BI templates.

Reference: The article's introduction states

"With query parameters

your reports become more dynamic... you can allow your report consumers to specify the values they want to see... or change the data source the report is connecting to." This establishes the fundamental purpose of parameters for dynamically changing data sources.