What’s new across Microsoft SQL in 2026 so far (SQL Server, Azure SQL, and SQL database in Fabric)

We’re halfway through 2026, and Microsoft SQL has not slowed down. Since SQLCon/FabCon in March (where we released a ton of things, and those updates can be found in this udpates video), we shipped a wave of updates across SQL Server, Azure SQL, and SQL database in Fabric, with Microsoft Build 2026 as the centerpiece. If you want the details on Build, start with my recap blog, The Era of the Agentic Database Developer.

This post collects everything new from mid-March through today, organized by service so you can find what matters to you. Every item is tagged Preview or Generally Available with a link. You can also catch new episodes on the Azure SQL YouTube channel, where we go deeper on a lot of what’s below.

Without further ado, here’s the comprehensive list of updates, with references for you to learn more.

Updates across Azure SQL and SQL database in Fabric

Generally Available

• Regex support for LOB types in T-SQL (varchar(max) and nvarchar(max) up to 2 MB; shipped in SQL Server 2025 CU5)
• Microsoft Entra server-level logins and fixed server roles
• Generate Embeddings function (AI_GENERATE_EMBEDDINGS) and External Model object support

Preview

• Change Event Streaming across Hyperscale and SQL Managed Instance; SQL database in Fabric coming soon
• Regex-powered Dynamic Data Masking (Preview coming soon)
• Local time zone support for Hyperscale, SQL Managed Instance, and SQL database in Fabric (Preview coming soon)

Azure SQL Database

Generally Available

• Versionless keys for Transparent Data Encryption

Preview

• Transparent Data Encryption now supports AES keys
• 160 and 192 vCore Premium-series options for Hyperscale

SQL database in Microsoft Fabric

Preview

• Full collation support
• Migration assistant
• Fabric Apps (with SQL database!)

SQL Server

Generally Available

• Cumulative Update #5 for SQL Server 2025 RTM
• Cumulative Update #25 for SQL Server 2022 RTM
• Security Update for SQL Server 2025 RTM CU4

Tools and developer

SQL Server Management Studio (SSMS)

• SSMS 22.7.0 and many previews
  • GitHub Copilot Agent Mode (Preview)
  • SQL Formatter (Preview)
  • Schema Compare (Preview)
  • New “What’s New” page and SQLCMD variable support in the publish dialog
  • Execution Context for GitHub Copilot in SSMS
• SSMS 22.6.0: Create Project from Database in Object Explorer, Entra-based auth for Storage Browser and DACPAC import/export
• SSMS 22.5.0: Migrate SQL Server to Azure SQL, 74 new SQL project item templates, and importing objects into a SQL project

MSSQL extension for VS Code

• 43: Azure SQL Database provisioning and more
  • Schema Designer with GitHub Copilot (Generally Available)
  • Data API builder with GitHub Copilot (Generally Available)
  • SQL Notebooks (Generally Available)
  • Azure SQL Database provisioning (Preview)
• 42: Backup/Restore, Flat File Import, Global Search, and Query Profiler (Generally Available)
• 41: SQL Notebooks, AI-powered Schema Design, and Data API builder (Preview)

SQL MCP Server and Data API builder

• Introducing SQL MCP Server

Drivers

• Data.SqlClient 6.1.5: improves connection performance, error propagation, and vector typing.
• Data.SqlClient 7.0.1: ships compatibility fixes for the 7.0 line.
• Microsoft ODBC Driver 17.11.1 for SQL Server: brings servicing updates, bug fixes, and expanded Linux support.
• Microsoft OLE DB Driver 19.4.2 for SQL Server: improves TLS handling and other servicing areas.
• mssql-python 1.5.0: Apache Arrow, sql_variant, and Native UUIDs: adds Apache Arrow, sql_variant support, and native UUID handling.
• mssql-python 1.6: Unblocking Your Threads: focuses on thread unblocking and smoother runtime behavior.
• mssql-python 1.7.1 and the case of the missing megabytes: focuses on polish and PyPI publishing housekeeping.
• mssql-python 1.8.0: friendlier Row access, Bulk Copy with MSI, and a refreshed ODBC driver: adds friendlier Row access, Bulk Copy with MSI, and a refreshed ODBC driver.
• mssql-python 1.9.0: Row-friendly Bulk Copy, smarter NULL parameters, and a more portable wheel: improves Bulk Copy ergonomics, NULL parameter handling, and wheel portability.
• mssql-django 1.7.1: Microsoft Fabric Support and Migration Fixes: adds Microsoft Fabric support and fixes migration edge cases.
• mssql-django 1.7.2: ships targeted bug fixes for the Django backend.
• Microsoft Drivers 5.13.1 for PHP for SQL Server: maintenance fixes for sqlsrv and pdo_sqlsrv.
• go-mssqldb v1.10.0: Better Reliability, Developer Experience, and Standards Compliance: improves reliability, developer experience, and standards compliance.

Worth a read

These aren’t feature announcements, but they’re some of the best thinking we published this spring:

• The Polyglot Tax, Part 4: The agent-ready database
• Microsoft SQL security across the MAESTRO stack
• Zero Trust for data: make Microsoft Entra authentication your policy baseline
• Why your database schema belongs in Git
• Beyond markdown: shareable sites with Rayfin (Preview)
• SQL AI Developer certification
• SQL MCP Server as an App Service
• Considering NL2SQL? How SQL MCP Server helps

Until next time

That’s the first half of 2026. New episodes of Data Exposed land on Thursdays on the Azure SQL YouTube channel, and we hope to see a lot of you in person at SQLCon Barcelona in September!