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2025 Year in Review: What’s new across SQL Server, Azure SQL and SQL database in Fabric

What a year 2025 has been for SQL! ICYMI and are looking for some hype, might I recommend you start with this blog from Priya Sathy, the product leader for all of SQL at Microsoft: One consistent SQL: The launchpad from legacy to innovation. In this blog post, Priya explains how we have developed and continue to develop one consistent SQL which “unifies your data estate, bringing platform consistency, performance at scale, advanced security, and AI-ready tools together in one seamless experience and creates one home for your SQL workloads in the era of AI.”

Microsoft Ignite announcements

For the FIFTH(!!) year in a row (my heart is warm with the number, I love SQL and #SQLfamily, and time is flying), I am sharing my annual Year in Review blog with all the SQL Server, Azure SQL and SQL database in Fabric news this year. Of course, you can catch weekly episodes related to what’s new and diving deeper on the Azure SQL YouTube channel (this blog post was livestreamed there too). This year, in addition to Data Exposed (52 new episodes and over 70K views!), we saw many new series related to areas like GitHub Copilot, SSMS, VS Code, and Azure SQL Managed Instance land in the channel, in addition to Data Exposed.

Of course, if you want to know the latest announcements from Microsoft Ignite, Bob Ward and I compiled this slide of highlights.

A diagram of a software company AI-generated content may be incorrect.

Comprehensive list of 2025 updates

You can read this blog (or use AI to reference it later) to get all the updates and references from the year (so much happened at Ignite but before it too!). The following are all the updates from the year:

SQL Server, Arc-enabled SQL Server, and SQL Server on Azure VMs

Generally Available

Preview

Migrations

Generally Available

Preview

Azure SQL Managed Instance

Generally Available

Preview

Azure SQL Database

Generally Available

Preview

Updates across SQL Server, Azure SQL and Fabric SQL database

Generally Available

Preview

SQL database in Microsoft Fabric and Mirroring

Generally Available

Preview

Tools and developer

  • How the Microsoft SQL team is investing in SQL tools and experiences
  • SQL Server Management Studio (SSMS) 22.1
    • Highlights:
      • GitHub Copilot Walkthrough (Preview): Guided onboarding from the Copilot badge.
      • Copilot right-click actions (Preview): Document, Explain, Fix, and Optimize.
      • Bring your own model (BYOM) support in Copilot (Preview).
      • Copilot performance: improved response time after the first prompt in a thread.
      • Fixes: addressed Copilot “Run ValidateGeneratedTSQL” loop and other stability issues.
  • SQL Server Management Studio (SSMS) 22
    • Highlights:
      • Support for SQL Server 2025
      • Modern connection dialog as default + Fabric browsing on the Browse tab.
      • Windows Arm64 support (initial) for core scenarios (connect + query).
      • GitHub Copilot in SSMS (Preview) is available via the AI Assistance workload in the VS Installer.
      • T-SQL/UX improvements: open execution plan in new tab, JSON viewer, results grid zooms.
      • New index support: create JSON and Vector indexes from Object Explorer.
  • SQL Server Management Studio (SSMS) 21
    • Highlights:
      • Installation and automatic updates via Visual Studio Installer.
      • Workloads/components model: smaller footprint + customizable install.
      • Git integration is available via the Code tools workload.
      • Modern connection dialog experience (Preview).
      • New customization options (e.g., vertical tabs, tab coloring, results in grid NULL styling).
      • Always Encrypted Assessment in the Always Encrypted Wizard.
      • Migration assistance via the Hybrid and Migration workload.
  • mssql-python Driver
  • MSSQL extension for VS Code 1.37.0
    • Highlights:
      • GitHub Copilot integration : Ask/Agent modes, slash commands, onboarding.
      • Edit Data : interactive grid for editing table data (requires mssql.enableExperimentalFeatures: true).
      • Data-tier Application dialog : deploy/extract .dacpac and import/export .bacpac (requires mssql.enableExperimentalFeatures: true).
      • Publish SQL Project dialog : deploy .sqlproj to an existing DB or a local SQL dev container.
      • Added “What’s New” panel + improved query results grid stability/accessibility.
  • MSSQL extension for VS Code 1.36.0
    • Highlights:
      • Fabric connectivity : browse Fabric workspaces and connect to SQL DBs / SQL analytics endpoints.
      • SQL database in Fabric provisioning : create Fabric SQL databases from Deployments.
      • GitHub Copilot slash commands : connection, schema exploration, query tasks.
      • Schema Compare extensibility: new run command for external extensions/SQL Projects (incl. Update Project from Database support).
      • Query results in performance/reliability improvements (incremental streaming, fewer freezes, better settings handling).
  • SqlPackage 170.0.94 release notes (April 2025)
    • Highlights:
      • Vector: support for vector data type in Azure SQL Database target platform (import/export/extract/deploy/build).
      • SQL projects: default compatibility level for Azure SQL Database and SQL database in Fabric set to 170.
      • Parquet: expanded supported types (including json, xml, and vector) + bcp fallback for unsupported types.
      • Extract: unpack a .dacpac to a folder via /Action:Extract.
      • Platform: Remove .NET 6 support; .NET Framework build updated to 4.7.2.
  • SqlPackage 170.1.61 release notes (July 2025)
    • Highlights:
      • Data virtualization (Azure SQL DB): added support for data virtualization objects in import/export/extract/publish.
      • Deployment: new publishing properties /p:IgnorePreDeployScript and /p:IgnorePostDeployScript.
      • Permissions: support for ALTER ANY EXTERNAL MIRROR (Azure SQL DB + SQL database in Fabric) for exporting mirrored tables.
      • SQL Server 2025 permissions: support for CREATE ANY EXTERNAL MODEL, ALTER ANY EXTERNAL MODEL, and ALTER ANY INFORMATION PROTECTION.
      • Fixes: improved Fabric compatibility (e.g., avoid deploying unsupported server objects; fixes for Fabric extraction scripting).
  • SqlPackage 170.2.70 release notes (October 2025)
    • Highlights:
      • External models: support for external models in Azure SQL Database and SQL Server 2025.
      • AI functions: support for AI_GENERATE_CHUNKS and AI_GENERATE_EMBEDDINGS.
      • JSON: support for JSON indexes + functions JSON_ARRAYAGG, JSON_OBJECTAGG, JSON_QUERY.
      • Vector: vector indexes + VECTOR_SEARCH and expanded vector support for SQL Server 2025.
      • Regex: support for REGEXP_LIKE.
  • Microsoft.Build.Sql 1.0.0 (SQL database projects SDK)
    • Highlights:
      • Breaking: .NET 8 SDK required for dotnet build (Visual Studio build unchanged).
      • Globalization support.
      • Improved SDK/Templates docs (more detailed README + release notes links).
      • Code analyzer template defaults DevelopmentDependency.
      • Build validation: check for duplicate build items.
  • Microsoft.Build.Sql 2.0.0 (SQL database projects SDK)
    • Highlights:
      • Added SQL Server 2025 target platform (Sql170DatabaseSchemaProvider).
      • Updated DacFx version to 170.2.70.
      • .NET SDK targets imported by default (includes newer .NET build features/fixes; avoids full rebuilds with no changes
  • Azure Data Studio retirement announcement (retirement February 28, 2026)

Anna’s Pick of the Year

It’s hard to pick a highlight representative of the whole year, so I’ll take the cheesy way out: people. I get to work with great people working on a great set of products for great people (like you) solving real world problems for people. So, thank YOU and you’re my pick of the year.

Until next time…

That’s it for now! We release new episodes on Thursdays and new #MVPTuesday episodes on the last Tuesday of every month on the Azure SQL YouTube channel. The team has been producing a lot more video content outside of Data Exposed, which you can find at that link too!

Having trouble keeping up? Be sure to follow us on twitter to get the latest updates on everything, @AzureSQL. And if you lose this blog, just remember aka.ms/newsupdate2025.

We hope to see you next YEAR, on Data Exposed!

–Anna and Marisa

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