In Power BI, what does a DirectQuery connection do?

A DirectQuery connection in Power BI is designed to allow users to interact with a data source in real-time. Instead of importing data into Power BI and storing it within the application, DirectQuery keeps the data in the original source. This means that whenever a user performs an action or makes a query, Power BI sends those queries directly to the data source to retrieve the latest data. As a result, users always see up-to-date information without needing to manually refresh a dataset in Power BI, making this option particularly beneficial for scenarios that require the most current data, such as live dashboards and reports.

The other options reflect misunderstandings of how DirectQuery operates. Storing data in Power BI is characteristic of an Import connection, whereas requiring manual refresh pertains to datasets that are not set up to refresh automatically, which contradicts the goal of DirectQuery. Lastly, stating that DirectQuery only works with Excel files is inaccurate; DirectQuery can connect to various database sources, not just Excel. Thus, the option that highlights real-time data updates aligns perfectly with the functionality of a DirectQuery connection.