Power BI Fabric is a powerful platform that combines various data management and analytics tools to help businesses turn raw data into valuable insights. A key factor in utilizing this platform effectively is understanding its capacity, which determines how resources are allocated and impacts both performance and scalability.

Licensing is another crucial aspect of Power BI Fabric, as it defines the features, data access, and collaboration capabilities available to users. By selecting the right license, businesses can ensure they have the tools they need while keeping costs in check. 

This blog will cover the essentials of Power BI Fabric capacity and licenses, providing insights to help you optimize your use of the platform.

What is Power BI Fabric?

Power BI Fabric is a cloud-based data platform developed by Microsoft, designed to unify various data services into a single, cohesive environment. It combines components from Microsoft Azure and other services to offer a comprehensive solution for data management and analytics. 

Power BI Fabric includes features such as data integration, data engineering, data science, data warehousing, real-time analytics, and business intelligence, all within one platform. The platform enables organizations to manage and analyze large volumes of data efficiently, supporting data-driven decision-making across industries. 

With Power BI Fabric, businesses can streamline the entire data lifecycle—from data ingestion and preparation to storage, analysis, and visualization—ensuring that their data processes are both efficient and scalable.

What is Power BI Fabric Capacity?

Power BI Fabric capacity represents the computational backbone that supports workloads across the Microsoft Fabric ecosystem. Capacity refers to a reserved set of resources, such as CPU, memory, and storage throughput, assigned to your tenant to ensure predictable performance and workload isolation.

Rather than relying on shared resources, capacities in Power BI Fabric offer:

• Dedicated processing power for analytics and data transformation.
• Better performance and scalability, especially for enterprise-grade workloads.
• Fine-grained control over how resources are allocated and used within an organization.

This model is especially beneficial for organizations handling large datasets, complex queries, or high concurrency across users and departments. Additionally, Fabric capacities can be managed and monitored to ensure optimal usage, helping organizations align performance needs with cost efficiency. 

With a solid grasp of what Fabric capacity is, let’s look at the next step: understanding the types available and when to use each.

Also Read: Power BI Premium to Microsoft Fabric Transition Guide

Types of Power BI Fabric Capacities

Power BI Fabric capacities are measured in Capacity Units (CUs) and come in SKU tiers, such as F64, F128, F256, etc., representing the allocated compute power and memory. These determine how well your workloads, such as data flows, semantic models, and queries, perform under load.

Here are the Key Capacity types:

1. F-SKU (Fabric Capacity)
   These are paid SKUs starting at F64 and scale upward. Higher SKUs mean higher compute and memory throughput. For example:
   
   • F64: Entry-level for small to mid-sized teams; supports moderate concurrency.
   • F128–F256: Suitable for enterprises with heavy data refreshes, large models, or real-time analytics.
     
     
2. Trial Capacity (F64 Trial)
   A free, time-limited capacity offered by Microsoft to explore Fabric features. Controlled by tenant admins, it includes core Fabric workloads but with expiration and usage limits.
   
   
3. Shared Capacity
   Uses pooled resources and is available with Free or Pro licenses. It’s fine for basic report building, but doesn’t support large datasets, advanced refreshes, or performance isolation.
   
   
4. Premium Capacity (via EM or P SKUs)
   Initially designed for Power BI Premium, these are still supported for specific embedded and enterprise cases, but Fabric is pushing toward unified F-SKUs.

If you are running data pipelines, using Direct Lake mode, or supporting multiple active users, it's recommended to start with at least F64 capacity. Track usage metrics, such as CPU time and queue delays, to scale efficiently. 

The right capacity ensures consistent performance, but without the right licensing model, your access to those capabilities remains limited. Both must work together to leverage Power BI Fabric fully.

Understanding Power BI Licensing and User Access

Power BI licensing defines what users can create, access, and share within Microsoft Fabric. While capacity governs performance and scale, licensing enables individual users to interact with that capacity.

Understanding the available licensing options can help organizations align user roles with the right level of access and functionality.

1. Power BI Free

This license is ideal for individuals exploring Power BI or using it for personal, non-collaborative tasks. It offers basic functionality with some clear limitations:

• Allows users to create and view reports only within their personal My Workspace.
• Does not permit the sharing of content or collaboration with other users.
• Cannot access shared workspaces or utilize Fabric capacities.
• Best suited for learning, testing, or non-production environments.

2. Power BI Pro

Pro licenses are designed for users who need to collaborate and share content across teams and departments. It enables seamless integration into shared workspaces and the Power BI service.

• Supports collaboration in shared workspaces with other Pro users.
• Enables publishing of reports and dashboards to the Power BI service.
• Includes scheduled data refreshes, report sharing, and content export options.
• Does not include premium-only features such as larger data models or advanced AI capabilities.

3. Power BI Premium Per User (PPU)

PPU is suited for advanced users or small teams that require access to premium features without investing in full capacity-based licensing.

• Provides access to larger datasets, paginated reports, and enhanced refresh rates.
• Enables advanced capabilities such as AI visuals, Dataflows Gen2, and deployment pipelines.
• All users accessing PPU content must have a PPU license.
• Ideal for pilot projects or teams working on data-intensive solutions.

4. Power BI Premium Capacity (P-SKU)

Premium capacity licenses have traditionally supported large-scale analytics by providing dedicated capacity. However, Microsoft is transitioning away from these licenses in favor of Fabric.

• Offers dedicated resources and supports report sharing with free users.
• Currently being phased out, with new purchases ending and renewals limited based on licensing agreements.
• Future enhancements will focus on Fabric, with no new features planned for P-SKU.
• Organizations using Premium should begin planning their migration to Fabric capacity.

5. Microsoft Fabric Capacity (F-SKU)

Fabric capacity represents the next generation of Power BI and data platform services, offering greater flexibility and alignment with modern data needs.

• Integrates Power BI with other Microsoft Fabric services like Synapse and Data Factory.
• Offers scalable capacity with more granular options and Azure integration.
• Includes all Power BI features previously available through Premium.
• Supports broader adoption of Microsoft’s unified data platform strategy.

6. Microsoft Fabric Trial License

For users exploring Microsoft Fabric, the trial license provides a temporary opportunity to experience the full platform.

• Automatically activates for first-time users.
• Offers access to all Fabric workloads, including Power BI, for a limited trial period.
• Useful for evaluating features and testing organizational fit.

7. Microsoft 365 E5 License (with Power BI Pro)

Organizations already using Microsoft 365 E5 benefit from built-in Power BI Pro licensing, eliminating the need for separate purchases.

• Includes all standard Power BI Pro capabilities.
• Ideal for enterprises that standardize on Microsoft 365 across departments.

The next step is understanding how to evaluate your organization’s needs and determine the most effective licensing and capacity strategy.

Suggested Read: Power BI Premium Licensing Changes and Transition to Microsoft Fabric

How to Choose the Best Capacity and Licensing Mix

Selecting the right combination of Power BI Fabric capacity and licenses depends on your organization's scale, data complexity, and user needs. Rather than defaulting to the most powerful (and expensive) option, it's smarter to tailor your setup based on specific roles, workloads, and collaboration patterns.

Use these guiding questions to shape your decision:

• How many users will be creating vs. consuming reports?
  
  • Creators typically need Power BI Pro or PPU.
  • Consumers can often use Free licenses if content is hosted on Premium Capacity.

• Are advanced features, such as large models, AI, or paginated reports, required?
  
  • If only a few users require them, opt for PPU.
  • If these features are needed at scale, opt for Premium Capacity (F-SKU).

• Is consistent performance across departments critical?
  
  • Select dedicated capacity (e.g., F64+) to prevent throttling and ensure workload isolation.

• Do you need to support external users or embed analytics in apps?
  
  • Premium Capacity is required for embedding and for allowing Free users to access shared reports.

• What’s your budget tolerance and growth outlook?
  
  • Start with Pro + PPU for small to mid-sized teams.
  • Scale into Premium Capacity as concurrent usage or complexity increases.

Once you have determined the right license mix for your team, the next critical step is configuring your Fabric capacity. This setup directly impacts performance, resource availability, and overall user experience.

How to Configure Power BI Fabric Capacity

Properly configuring Fabric capacity ensures that your organization’s data workloads are isolated, performant, and optimized for cost and scalability. Unlike shared resources, Fabric capacities provide dedicated compute power through F-SKUs (Fabric SKUs), which must be provisioned and managed actively.

Here’s what the configuration process involves:

1. Choose the Right Capacity SKU

Fabric offers capacity through a tiered SKU system (F2, F4, F8, F16, F32, F64, F128, etc.), where higher SKUs provide more memory and processing power.

• Start small (e.g., F2 or F4) if you're piloting Fabric or supporting a limited team.
• Scale up to higher SKUs (F64+) for enterprise-wide deployment, advanced AI workloads, or embedding needs.
• Evaluate SKU levels based on concurrent users, dataset sizes, and workload complexity.

2. Provision the Capacity in the Microsoft 365 Admin Center

After purchasing the capacity SKU, an admin must assign it to a capacity workspace:

• Go to Microsoft 365 Admin Center → Billing → Licenses → Microsoft Fabric.
• Assign the capacity to a workspace from the Power BI Admin Portal under Capacities.
• Set region and resource location appropriately for compliance and performance.

3. Configure Workspaces to Use Capacity

Not all workspaces use capacity by default. You need to explicitly assign premium capacity to specific workspaces.

• In Power BI Service, go to Workspace settings → Advanced.
• Under “Premium,” select the assigned capacity from the dropdown.
• This ensures workloads in that workspace use dedicated Fabric resources.

4. Set Capacity Workload Settings

Fine-tuning capacity usage across services ensures better performance and resource management.

From the Power BI Admin Portal → Capacity Settings, you can:

• Toggle workloads like Dataflows Gen2, AI, and Semantic Models.
• Allocate maximum memory percentages to avoid overloading.
• Monitor refresh queues and dataset processing times.

5. Monitor and Optimize Capacity Usage

Ongoing monitoring helps prevent over-provisioning or performance degradation.

Use the Fabric Capacity Metrics app to track:

• CPU usage, memory spikes, and workload failures.
• Concurrency limits and refresh bottlenecks.
• Based on trends, adjust SKU levels or redistribute workloads across multiple capacities.

Configuring Fabric capacity is a continuous process of tuning resources to fit evolving workloads. Starting with the right SKU, assigning it correctly, and actively monitoring usage can significantly improve performance and ROI.

Conclusion

Understanding Power BI Fabric capacity and licensing is essential for building a scalable and cost-effective analytics environment. With a properly configured capacity setup and the right licensing strategy, organizations can ensure high performance, streamline collaboration, and optimize resource usage across teams. 

With Power BI Premium approaching its retirement, transitioning to Microsoft Fabric is becoming essential for organizations looking to modernize and scale their data landscape. Fabric offers a more unified and powerful platform, enabling businesses to stay ahead with cutting-edge capabilities in analytics and data management.

WaferWire provides the expertise and strategic support needed to make this transition seamless. From evaluating your current environment to building a tailored roadmap, executing migration, and delivering post-implementation support, WaferWire ensures you get the most out of Microsoft Fabric.

Don’t wait for the end-of-life deadline to catch you off guard. Contact us today for a complimentary consultation and start your journey toward a future-ready data platform.

FAQs

Q. Can Power BI Fabric capacity be paused to save costs?
A. Yes, pausing Power BI Fabric capacity during non-peak hours helps reduce unnecessary costs. This is especially useful for development or test environments that don’t need 24/7 uptime. Pausing is managed via the Microsoft 365 Admin Center and can be resumed anytime as needed.

Q. Does Power BI Fabric support multi-geo deployment for global teams?
A. Yes, Power BI Fabric supports deploying capacities across multiple geographic regions. This helps organizations comply with regional data residency regulations and improves performance for users in different locations. You can assign specific regions during capacity setup.

Q. What happens if my workload exceeds the assigned Fabric capacity?
A. When workloads exceed the capacity limits (like CPU or memory), tasks may be throttled or queued. This results in delayed report loading, refresh failures, or timeouts. To prevent performance issues, monitor usage and upgrade to a higher SKU if needed.

Q. Can I use Power BI Fabric with other Microsoft services like Azure Synapse?
A. Absolutely. Power BI Fabric is built to integrate with Microsoft tools like Azure Synapse, Data Factory, and OneLake. This allows you to build unified data pipelines, apply advanced analytics, and create end-to-end solutions within the Microsoft ecosystem.

Q. How should organizations prepare for the transition from Power BI Premium to Microsoft Fabric?
A. Begin by auditing your existing Premium capacities and identifying dependent reports or workspaces. Use the trial F64 Fabric capacity to test compatibility and performance. Then plan a phased migration to F-SKUs, ensuring user roles, permissions, and governance are updated.