Microsoft Fabric Blog authors Anna and Marisa look back at a transformative year for SQL technologies, summarizing advancements across SQL Server, Azure SQL, Fabric SQL database, and related tooling, including Copilot and AI integration.

2025 SQL Year in Review: What’s New Across SQL Server, Azure SQL, and SQL Database in Fabric

By Microsoft Fabric Blog (Anna and Marisa)

Overview

2025 has been an impactful year for SQL professionals, with sweeping changes and advancements across on-premises, cloud, and platform-as-a-service offerings. This wrap-up details major feature releases and previews from SQL Server 2025, Azure SQL, Microsoft Fabric SQL Database, key migration tools, AI capabilities, Copilot enhancements, and major improvements in developer tooling.

Key Announcements and Highlights

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

  • SQL Server 2025: General availability and deep Linux integration. New features like enhanced backup/restore, resource governance, and security updates.
  • Hybrid/Multicloud Management: Expanded Azure Arc coverage, unified configuration and governance.
  • Security: Security updates and transparent data encryption improvements.
  • AI Integration: NVIDIA Nemotron RAG and Copilot support for advanced analytics and development tasks.

Migrations

  • Major improvements to Azure Database Migration Service (PowerShell, Azure CLI, Python SDK).
  • Enhancements to SQL Server Migration Assistant (SSMA), including Oracle conversion Copilot and support for new SQL versions.
  • New schema migration capabilities and increased multicloud support.

Azure SQL Managed Instance & Azure SQL Database

  • Next-gen service tiers in Managed Instance (zone redundancy, improved connectivity, business critical upgrades).
  • Significant improvements in backup, failover, geo-replication, audit, and monitoring.
  • Public previews of new backup immutability features and geo-replicas for Hyperscale.

Updates Across Platforms

  • SQL Server, Azure SQL, and Fabric now support vector data types, JSON indexes, regex, and improved data encryption.
  • Change Event Streaming to Azure Event Hubs and DiskANN vector indexing for faster analytics.

SQL Database in Microsoft Fabric

  • Fabric Databases and SQL endpoints now generally available, supporting advanced analytics and fast data ingestion.
  • Copilot enhancements for analytics, mirroring of SQL Server, and new workspace level security features (private links, customer-managed keys, auditing).
  • Enhanced Python and Spark Connector support for developers.

Tools and Developer Experience

  • SQL Server Management Studio (SSMS) 22.x: Modern UI, Copilot integration (AI Assistance), improved T-SQL and UX, migration wizards.
  • VS Code MSSQL Extension (1.36.0, 1.37.0): Direct Copilot integration, Fabric browsing, SQL project support, improved query results.
  • SqlPackage Upgrades: Enhanced support for vector/JSON, AI functions (AI_GENERATE_CHUNKS, AI_GENERATE_EMBEDDINGS), better deployment and permissions handling.
  • Microsoft.Build.Sql SDK: .NET 8 support, improved build validation.
  • Drivers: ODBC, OLE DB, JDBC, and .NET drivers updated with new features, enhanced security, and performance.
  • Azure Data Studio: Announced retirement (Feb 2026).

Notable AI and Copilot Features

  • GitHub Copilot walkthroughs and right-click actions (document, explain, fix, optimize) in SQL tooling (SSMS/VS Code).
  • BYOM support: Bring your own model to Copilot.
  • New AI functions in SQL Server / Azure SQL supported by SqlPackage, unlocking in-database machine learning scenarios.

Community Highlights

Closing Thoughts

Anna and Marisa close the review by celebrating the vibrant SQL community and encouraging everyone to stay plugged into regular updates and video content.

For a deeper dive on any feature, see the respective documentation and blog links included throughout the summary.

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