What’s new in Microsoft SQL in 2026 so far (SQL Server/Azure SQL/Fabric) | Data Exposed
Microsoft Developer recaps the 2026 updates shipped across SQL Server, Azure SQL, and SQL database in Fabric, highlighting security, tooling, and developer workflow changes announced around SQLCon/FabCon and Microsoft Build 2026.
Overview
The episode is a mid-year roundup of Microsoft SQL updates (mid-March through the publication date), spanning:
- SQL Server (including cumulative updates and fixes)
- Azure SQL
- SQL database in Microsoft Fabric
- Developer tooling (VS Code, SSMS, extensions)
- Security and AI-related features
A companion “what’s new” post is referenced for a service-by-service list of updates:
Timeline and reference links mentioned
- A recap blog is referenced: “The Era of the Agentic Database Developer”
- The episode points viewers to additional deep dives on the Azure SQL YouTube channel
Azure SQL and Fabric SQL updates highlighted
Authentication direction
- Mentions moving away from SQL authentication.
Security and data protection
- TDE with AES key support (Transparent Data Encryption enhancement).
Data masking
- Regex-powered DDM (Dynamic Data Masking using regular expressions).
AI and embeddings
- AI_GENERATE_EMBEDDINGS is called out as a feature/update.
Platform and scale features
- Local time zone support
- 192 vCore support
SQL database in Fabric announcements
- Mentions SQL database in Fabric updates and related announcements.
- Mentions Fabric Apps.
- Mentions shareable sites with Rayfin/Fabric Apps.
SQL Server updates highlighted
Cumulative updates and security
- Mentions SQL Server CU and security updates.
CU5 improvements and fixes
- Max lock memory % improvement.
- Fix for CPU starvation related to in-memory OLTP.
Additional engine features mentioned
- FulltextIndexVersion2
- Change feed settings
- CAG listener (Always On / availability group listener-related item)
Tooling and developer workflow updates
Build tooling announcements
- MSSQL extension for VS Code
- SSMS updates
Formatting and comparison
- SQL Formatter
- Schema Compare
Database DevOps and projects
- Database DevOps and SQL Projects in SSMS
Migration and assessment
- Migrate SQL Server to Azure SQL
- Assessments in SSMS
Notebooks and editor experiences
- SQL Notebooks back in VS Code
GitHub Copilot
- Mentions GitHub Copilot experiences in the SQL developer tooling context.
Azure Data Studio (ADS) retirement
- Mentions ADS retirement releases.
MCP and drivers
MCP
- Mentions a SQL MCP Server.
Drivers
- Mentions driver updates, including Python.
- Mentions Apache Arrow support.
Community and learning items
- Mentions AI security across the stack.
- Mentions a SQL AI developer certification.
- Mentions upcoming/related events including SQLCon Barcelona.
Links and channels mentioned
- News/update post: https://aka.ms/newsupdate2026
- Data Exposed playlist: https://aka.ms/dataexposedyt
- Microsoft Azure SQL YouTube: https://aka.ms/msazuresqlyt
- Microsoft SQL Server YouTube: https://aka.ms/mssqlserveryt
- Microsoft Developer YouTube: https://aka.ms/microsoftdeveloperyt
- Twitter (Anna Hoffman): https://twitter.com/AnalyticAnna
- Twitter (AzureSQL): https://aka.ms/azuresqltw