Power Query vs Direct SQL: When to Use Each for Database Data in Excel

Power Query Strengths

• Data transformation: Filter, merge, pivot, clean — all before data hits the worksheet
• Multiple sources: Combine data from SQL, Excel files, web APIs, and more
• Refresh capability: Click refresh to pull updated data
• Query folding: Efficient queries pushed to the database
• Visual interface: No SQL knowledge required for basic operations

Power Query Limitations

• Read-only: You cannot write data back to the database
• Performance: Complex transformations on large datasets can be slow
• Learning curve: M language for advanced customization
• Result caching: May not reflect real-time database state

Direct SQL Strengths

• Write capability: With VBA or add-ins, you can UPDATE and INSERT
• Performance: Raw SQL can be faster for simple queries
• Full SQL power: Complex joins, CTEs, stored procedures
• Real-time: No intermediate caching layer

Direct SQL Limitations

• SQL knowledge required: Must write queries manually
• Single source: Each query hits one database
• No built-in refresh: Need VBA for automated updates
• Connection management: More setup required

Decision Framework

Use Power Query when:

• Building refreshable reports
• Combining multiple data sources
• Non-technical users need to modify queries
• Data needs transformation before analysis

Use Direct SQL when:

• You need to write data back to the database
• Executing stored procedures
• Real-time data is critical
• Complex SQL that Power Query can't represent

Official Resources

• About Power Query — Power Query overview
• Native database query — direct SQL in Power Query