Direct Lake mode is a groundbreaking semantic model capability for analyzing very large data volumes in Power BI. Direct Lake is based on loading parquet-formatted files directly from a data lake without having to query a Lakehouse or Warehouse endpoint, and without having to import or duplicate data into a Power BI model. Direct Lake is a fast-path to load the data from the lake straight into the Power BI engine, ready for analysis. The following diagram shows how classic import and DirectQuery modes compare with Direct Lake mode.
Definition Source: @MicrosoftPowerBI
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