How to Connect Power Apps to SharePoint, Dataverse, SQL & APIs, And When to Use Each

When you begin working with Power Apps, one of the earliest — and most important — decisions you’ll make is:

“Which data source should I use?”

With options like SharePoint, SQL Server, Dataverse, and APIs, choosing the right one can dramatically impact your app’s performance, cost, security, and long-term scalability.

This blog breaks down each data source, how to connect to it, and — most importantly — when you should choose one over the other. Let’s dive in.

1. Connecting Power Apps to SharePoint

SharePoint is one of the most popular data sources for Power Apps, especially for organizations already deep in Microsoft 365.

How to connect:
 

• In Power Apps Studio → Data → Add Data
• Search for SharePoint
• Choose your site
• Select your lists/libraries

When to use SharePoint:
 

• Perfect for lightweight apps
• Ideal for small/medium datasets (0–20k records)
• Great for departmental apps, simple forms, checklists, approvals
• Zero additional licensing cost

When NOT to use SharePoint:
 

• Not suitable for large-scale, relational, or transactional systems
• Delegation limitations can slow down your app
• Not built for enterprise database workloads

Best use cases:
Employee onboarding forms, leave requests, asset tracking, simple registries.

2. Connecting Power Apps to Microsoft Dataverse

Dataverse is the official, enterprise-grade database for Power Apps.

How to connect:
 

• Use a Model-Driven or Canvas App
• Select Add data → search for Dataverse
• Connect to tables (entities) in your environment

When to use Dataverse:
 

• Enterprise applications
• Complex relational data
• Security roles & row-level permissions
• Built-in auditing, logging, business rules
• Integrates natively with Power Automate, Power BI & Azure

When NOT to use Dataverse:
 

• Requires premium licensing
• Overkill for small, simple apps

Best use cases:
Case management, CRM-style workflows, compliance-driven apps, multi-department systems.

3. Connecting Power Apps to SQL Server

SQL is a powerful, stable, and highly scalable option — especially for organizations with existing databases.

How to connect:
 

• Use the SQL Server connector
• Provide server name, database, credentials
• Cloud SQL requires a gateway unless using Azure SQL

When to use SQL:
 

• Apps needing high performance
• Data models already stored in SQL
• Reporting-heavy applications
• Scenarios requiring stored procedures

When NOT to use SQL:
 

• Requires premium license (except Azure SQL via some plans)
• Not as tightly integrated with Power Apps security as Dataverse

Best use cases:
Inventory systems, finance data apps, analytics dashboards, ERP extensions.

4. Connecting Power Apps to APIs (Custom Connectors)

APIs unlock the ability to integrate with any external system — ERP, CRM, custom apps, SaaS platforms, and more.

How to connect:

1. Build a Custom Connector using:

• OpenAPI/Swagger definition
• Postman collection
• API URL & authentication

2. Add the connector as a data source to your app

When to use APIs:
 

• Integrating with existing enterprise systems
• When the required data is not inside Microsoft 365
• For automation across 3rd-party platforms
• When real-time data sync is needed

When NOT to use APIs:
 

• Requires development skills
• Requires premium licensing
• Depends on external system reliability

Best use cases:
Syncing with SAP, Salesforce, ServiceNow, custom databases, payment gateways, logistics systems.

If you're serious about building scalable apps that go beyond basic connectors, proper training becomes essential. Consider joining our Power Apps Training — a hands-on, real-world course designed for working professionals.
 

How to Choose the Right Data Source (Decision Framework)

Here’s a simple way to decide:

General rule of thumb:
 

• SharePoint for small apps
• SQL for performance
• Dataverse for enterprise
• APIs for integration

Common Mistakes to Avoid

 

• Using SharePoint for large, relational databases
• Ignoring delegation warnings
• Mixing too many data sources (performance killer)
• Not considering licensing early
• Underestimating Dataverse security needs
   

Final Thoughts

Power Apps can connect to hundreds of data sources — but the best apps are the ones built with the right data foundation. Choosing wisely affects your app’s performance, user experience, maintainability, and long-term adoption.

Start small, prototype often, and always match your data source to the scale of the business problem.

Editor’s Note

If you're serious about building enterprise-grade Power Apps and automating processes with Power Automate, consider leveling up through a structured, hands-on program.

Our Power Apps + Power Automate Course (On-Cloud BI & Automation) helps professionals learn how to build real-world apps that connect to SharePoint, Dataverse, SQL, APIs — and automate them end-to-end. It’s practical, project-based, and designed for working professionals.
 

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