SQL MCP Server (Data API Builder MCP)

This skill powers GitHub Copilot assistance for SQL MCP Server, a feature of Data API Builder (DAB) version 1.7+ that exposes databases to AI agents via the Model Context Protocol (MCP). It provides conversational guidance for configuring, deploying, and securing SQL MCP Server for AI-powered database workflows.

Core Mental Model

SQL MCP Server enables AI agents to interact with databases through a secure, typed interface. It's Data API Builder with MCP capabilities, not a separate product. Users who need MCP capabilities but have never heard of DAB should be guided through the complete setup.

What SQL MCP Server Provides

• •MCP endpoint at /mcp that exposes database entities as MCP tools
• •Six DML tools for agents: describe_entities, create_record, read_records, update_record, delete_record, execute_entity
• •Security through abstraction - agents never touch SQL directly, only work through DAB's entity layer
• •Deterministic queries - no NL2SQL, only NL2DAB (safe, predictable SQL generation)
• •RBAC enforcement - role-based access control applies to every tool operation
• •Built-in caching - automatic result caching for read_records operations
• •Full observability - OpenTelemetry tracing, health checks, Azure monitoring

Key Architecture

AI Agent (VS Code, Foundry, Custom) 
  → MCP Protocol 
    → SQL MCP Server (/mcp endpoint)
      → DAB Entity Abstraction Layer
        → Database (SQL Server, PostgreSQL, MySQL, etc.)

Configuration Approach

SQL MCP Server uses the same dab-config.json as regular DAB:

• •data-source: Database connection settings
• •runtime.mcp: MCP-specific settings (enabled, path, tool controls)
• •entities: Exposed tables/views/stored procedures with descriptions and permissions

MCP is enabled by default when you have DAB 1.7+. You only need to configure it when you want to restrict what agents can do.

Understanding MCP vs Data API Builder

Common User Starting Points

Scenario 1: User comes with MCP needs

• •User: "I want to give my AI agent access to my database via MCP"
• •Approach: Explain SQL MCP Server is DAB's MCP feature, guide through full setup

Scenario 2: User knows DAB, wants MCP

• •User: "I have a DAB config, how do I enable MCP?"
• •Approach: Just upgrade to v1.7+ - MCP is enabled by default

Scenario 3: User confused about naming

• •User: "Is SQL MCP Server different from Data API Builder?"
• •Approach: Clarify it's DAB 1.7+ with MCP capabilities enabled

Terminology Guide

Installation & Prerequisites

Version Requirements

Critical: SQL MCP Server requires Data API builder 1.7+ (currently in preview/RC).

Install DAB CLI (Prerelease)

dotnet tool install microsoft.dataapibuilder --prerelease

Or update existing:

dotnet tool update microsoft.dataapibuilder --prerelease

Verify Installation

dab --version
# Should show 1.7.x or higher

Prerequisites Checklist

• • .NET 9.0+ installed
• • DAB CLI 1.7+ installed
• • Database access (SQL Server, PostgreSQL, MySQL, Cosmos DB)
• • Environment variable support (for connection strings)
• • VS Code or MCP client for testing

Quick Start Workflow

For Users New to Both MCP and DAB

Recommended Path:

1. •Install DAB CLI (prerelease)
2. •Create database and sample table
3. •Initialize DAB config with MCP enabled (default)
4. •Add entities with semantic descriptions
5. •Start SQL MCP Server locally
6. •Connect from VS Code or other MCP client
7. •Test with agent prompts

Example: 5-Minute Setup

# 1. Initialize config (MCP enabled by default)
dab init \
  --database-type mssql \
  --connection-string "@env('DATABASE_CONNECTION_STRING')" \
  --host-mode Development \
  --config dab-config.json

# 2. Add entity with description
dab add Products \
  --source dbo.Products \
  --permissions "anonymous:read" \
  --description "Product catalog with pricing, inventory, and supplier information"

# 3. Add field descriptions (critical for AI understanding)
dab update Products \
  --fields.name ProductID \
  --fields.description "Unique product identifier" \
  --fields.primary-key true

dab update Products \
  --fields.name ProductName \
  --fields.description "Display name of the product"

dab update Products \
  --fields.name UnitPrice \
  --fields.description "Retail price per unit in USD"

# 4. Validate and start
dab validate && dab start

Connect from VS Code: Create .vscode/mcp.json:

{
  "servers": {
    "sql-mcp-server": {
      "type": "http",
      "url": "http://localhost:5000/mcp"
    }
  }
}

Configuration Reference

MCP Runtime Settings

Default behavior: MCP is enabled with all tools active. Only configure when restricting.

{
  "runtime": {
    "mcp": {
      "enabled": true,              // default: true
      "path": "/mcp",               // default: /mcp
      "description": "Optional server description for clients",
      "dml-tools": {
        "describe-entities": true,  // default: true
        "create-record": true,      // default: true  
        "read-records": true,       // default: true
        "update-record": true,      // default: true
        "delete-record": true,      // default: true
        "execute-entity": true      // default: true
      }
    }
  }
}

CLI Configuration Commands

# Enable/disable MCP globally
dab configure --runtime.mcp.enabled true
dab configure --runtime.mcp.path "/mcp"

# Disable specific tools globally (restrict all agents)
dab configure --runtime.mcp.dml-tools.delete-record false
dab configure --runtime.mcp.dml-tools.create-record false

# Add server description (shown to MCP clients)
dab configure --runtime.mcp.description "Production inventory database MCP endpoint"

Entity-Level MCP Control

Default: Entities participate in MCP automatically. Only configure to exclude or restrict.

{
  "entities": {
    "Products": {
      "mcp": {
        "dml-tools": true  // default: true (all tools allowed per runtime settings)
      }
    },
    "SensitiveData": {
      "mcp": {
        "dml-tools": false  // exclude this entity from MCP completely
      }
    },
    "AuditLogs": {
      "mcp": {
        "dml-tools": {
          "create-record": true,   // allow create
          "read-records": true,    // allow read
          "update-record": false,  // prevent updates
          "delete-record": false   // prevent deletes
        }
      }
    }
  }
}

The Six DML Tools

SQL MCP Server exposes exactly six tools to AI agents:

1. describe_entities

Purpose: Returns all entities the current role can access, including fields, types, descriptions, and allowed operations.

Key Points:

• •Doesn't query the database - reads from in-memory config
• •Shows only entities/fields the current role can see
• •Critical first step for agents to understand available data
• •Includes semantic descriptions you add via --description flags

Example Response:

{
  "entities": [
    {
      "name": "Products",
      "description": "Product catalog with pricing and inventory",
      "fields": [
        {
          "name": "ProductId",
          "type": "int",
          "isKey": true,
          "description": "Unique product identifier"
        },
        {
          "name": "UnitPrice",
          "type": "decimal",
          "description": "Retail price in USD"
        }
      ],
      "operations": ["read_records", "update_record"]
    }
  ]
}

2. create_record

Purpose: Insert new rows into tables.

Requirements:

• •Entity must have create permission for current role
• •Validates against entity schema
• •Enforces create policies
• •Returns created record with generated values (e.g., auto-increment IDs)

3. read_records

Purpose: Query tables and views with filtering, sorting, pagination, and field selection.

Features:

• •Builds deterministic SQL from structured parameters (NL2DAB, not NL2SQL)
• •Applies read permissions and field projections
• •Enforces row-level security policies
• •Automatic caching - results cached per DAB caching config

4. update_record

Purpose: Modify existing rows.

Requirements:

• •Requires primary key and fields to update
• •Validates PK exists
• •Enforces update permissions and policies
• •Only updates fields current role can modify

5. delete_record

Purpose: Remove existing rows.

Requirements:

• •Requires primary key
• •Validates PK exists
• •Enforces delete permissions and policies

Warning: Many production deployments disable this tool globally to prevent accidental data loss.

6. execute_entity

Purpose: Execute stored procedures.

Features:

• •Supports input parameters and output results
• •Validates parameters against procedure signature
• •Enforces execute permissions
• •Passes parameters safely (prevents SQL injection)

Semantic Descriptions (Critical for AI)

Why descriptions matter: AI agents rely on context. Without descriptions, agents only see technical names like ProductID. With descriptions, they understand it's "Unique identifier for each product in the catalog."

Entity Descriptions

# Add during creation
dab add Products \
  --source dbo.Products \
  --permissions "anonymous:*" \
  --description "Product catalog with pricing, inventory, and supplier information"

# Update existing entity
dab update Products \
  --description "Product catalog with pricing, inventory, and supplier information"

Field Descriptions

# Single field
dab update Products \
  --fields.name UnitPrice \
  --fields.description "Retail price per unit in USD"

# Multiple fields (call multiple times)
dab update Products \
  --fields.name ProductID \
  --fields.description "Unique identifier for each product" \
  --fields.primary-key true

dab update Products \
  --fields.name UnitsInStock \
  --fields.description "Current inventory count available for purchase"

Stored Procedure Parameter Descriptions

dab add GetOrdersByDateRange \
  --source dbo.usp_GetOrdersByDateRange \
  --source.type stored-procedure \
  --permissions "authenticated:execute" \
  --description "Retrieves all orders placed within a specified date range" \
  --parameters.name "StartDate,EndDate,CustomerID" \
  --parameters.description "Beginning of date range (inclusive),End of date range (inclusive),Optional customer ID filter (null returns all customers)" \
  --parameters.required "true,true,false" \
  --parameters.default ",,null"

Description Best Practices

Do:

• •Be specific: "Customer shipping address" not "Address"
• •Include units: "Price in USD", "Weight in kilograms"
• •Mention formats: "ISO 8601 date format", "E.164 phone format"
• •Explain business rules: "Negative values indicate credit balance"
• •Note optional fields: "Optional; null returns all results"

Don't:

• •Use only technical jargon
• •Duplicate field names: "ProductID is the product ID" adds no value
• •Write novels - keep to 1-2 sentences
• •Ignore nullable fields - mention when null has special meaning

Security & Authentication

Two Authentication Directions

Inbound (Client → SQL MCP Server): How AI agents authenticate to your MCP endpoint Outbound (SQL MCP Server → Database): How DAB authenticates to your database

Outbound Authentication (to Database)

Option 1: SQL User/Password (Development)

dab init \
  --database-type mssql \
  --connection-string "@env('SQL_CONNECTION_STRING')"

Environment variable:

SQL_CONNECTION_STRING=Server=tcp:myserver.database.windows.net,1433;Database=mydb;User ID=myuser;Password=mypass;Encrypt=True;

Option 2: Managed Identity (Recommended for Azure)

Server=tcp:myserver.database.windows.net,1433;Database=mydb;Authentication=Active Directory Managed Identity;

For User-Assigned Managed Identity (UAMI):

Server=tcp:myserver.database.windows.net,1433;Database=mydb;Authentication=Active Directory Managed Identity;User Id=<uami-client-id>;

Inbound Authentication (from Clients)

Option 1: Anonymous (Development Only)

# No auth config needed - defaults to anonymous
# Agents use only what 'anonymous' role permits
dab configure --runtime.host.authentication.provider AppService

Option 2: Microsoft Entra ID / JWT (Production)

dab configure \
  --runtime.host.authentication.provider EntraId

dab configure \
  --runtime.host.authentication.jwt.audience "api://<app-id>"

dab configure \
  --runtime.host.authentication.jwt.issuer "https://login.microsoftonline.com/<tenant-id>/v2.0"

# Grant permissions for authenticated users
dab update Products --permissions "authenticated:read"

Option 3: API Gateway (Key-Based)

• •SQL MCP Server doesn't support API keys directly
• •Front the /mcp endpoint with Azure API Management or similar gateway
• •Gateway handles key validation, forwards to SQL MCP Server

RBAC (Role-Based Access Control)

Every DML tool operation enforces RBAC rules:

• •Which entities are visible
• •Which operations are allowed (create/read/update/delete/execute)
• •Which fields are included/excluded
• •Whether row-level policies apply

# Anonymous can only read specific fields
dab add Products --source dbo.Products --permissions "anonymous:read"
dab update Products --fields.exclude "Cost,Margin,SupplierID"

# Authenticated users can CRUD
dab update Products --permissions "authenticated:*"

# Admin can see everything
dab update Products --permissions "admin:*"

Deployment Scenarios

Local Development (VS Code)

Steps:

1. •Run dab start in terminal
2. •Create .vscode/mcp.json in workspace
3. •Configure MCP server in VS Code
4. •Test with Copilot Chat

MCP Config:

{
  "servers": {
    "sql-mcp-server": {
      "type": "http",
      "url": "http://localhost:5000/mcp"
    }
  }
}

Azure Container Apps

Key Steps:

1. •Create Azure SQL Database
2. •Configure dab-config.json
3. •Create Dockerfile with embedded config
4. •Build and push to Azure Container Registry
5. •Deploy to Container Apps with connection string secret
6. •Get public MCP endpoint URL

Dockerfile:

FROM mcr.microsoft.com/azure-databases/data-api-builder:1.7.83-rc
COPY dab-config.json /App/dab-config.json

⚠️ ANTI-PATTERN: Never use Azure Files, storage accounts, or volume mounts for dab-config.json. Always build a custom Docker image with the config embedded and push to ACR. Storage mounts add latency, failure modes, and unnecessary complexity.

Deploy:

az containerapp create \
  --name sql-mcp-server \
  --resource-group rg-sql-mcp \
  --environment sql-mcp-env \
  --image <acr>.azurecr.io/sql-mcp-server:1 \
  --target-port 5000 \
  --ingress external \
  --secrets "mssql-connection-string=<connection-string>" \
  --env-vars "MSSQL_CONNECTION_STRING=secretref:mssql-connection-string"

.NET Aspire

Integration Pattern:

1. •Add DAB as Aspire component
2. •Configure via appsettings.json or environment
3. •MCP endpoint available within Aspire service mesh
4. •Use with Aspire-hosted AI agents

Microsoft AI Foundry

Connection Steps:

1. •Deploy SQL MCP Server (Container Apps or other hosting)
2. •In Foundry project: Add a tool → Custom → Model Context Protocol
3. •Set remote MCP endpoint URL
4. •Configure authentication (Unauthenticated, Entra ID, or OAuth passthrough)
5. •Test with agent prompts

Common Conversational Patterns

User: "I want to give my AI agent database access"

Ask:

1. •Do you have a database set up?
2. •Have you heard of Data API Builder (DAB)?
3. •What database type? (SQL Server, PostgreSQL, MySQL, Cosmos DB)
4. •Where will the agent run? (VS Code, Azure AI Foundry, custom client)
5. •What tables/views should the agent access?

Guide through:

1. •Install DAB CLI 1.7+ (prerelease)
2. •Initialize config with database connection
3. •Add entities with descriptions
4. •Start locally for testing
5. •Deploy to Azure if needed

User: "How do I enable MCP on my existing DAB config?"

Answer:

• •MCP is enabled by default in DAB 1.7+
• •Just upgrade: dotnet tool update microsoft.dataapibuilder --prerelease
• •Restart with dab start - /mcp endpoint is live
• •Only configure if you want to restrict tools or entities

User: "My agent can't see my tables"

Troubleshoot:

1. •Is entity added to config? (dab add)
2. •Does current role have permissions? (check --permissions)
3. •Is entity excluded from MCP? (check mcp.dml-tools: false)
4. •Is tool disabled globally? (check runtime.mcp.dml-tools)
5. •Did agent call describe_entities first?

User: "How do I prevent agents from deleting data?"

Options:

1. •Global: dab configure --runtime.mcp.dml-tools.delete-record false
2. •Per-entity: Set mcp.dml-tools.delete-record: false in entity config
3. •RBAC: Don't grant delete action to agent's role

User: "Can agents write raw SQL?"

Answer:

• •No. SQL MCP Server intentionally doesn't support NL2SQL.
• •Agents use structured DML tools that generate deterministic SQL via DAB's query builder.
• •This prevents SQL injection and ensures safety/predictability.
• •Think of it as NL2DAB (natural language → DAB API → safe SQL).

User: "How do I add descriptions for better AI understanding?"

Guide:

1. •Entity level: Use --description in dab add or dab update
2. •Field level: Use --fields.name and --fields.description in dab update
3. •Parameters: Use --parameters.name and --parameters.description for stored procedures
4. •Include units, formats, business rules, and context

Example:

dab update Products \
  --fields.name UnitPrice \
  --fields.description "Retail price per unit in USD (includes tax)"

User: "How do I deploy to production?"

Recommend:

1. •Azure Container Apps (simplest Azure hosting)
2. •Azure App Service (alternative)
3. •Kubernetes (advanced)

Key considerations:

• •Use managed identity for database auth
• •Enable Microsoft Entra ID for inbound auth
• •Disable delete-record tool if appropriate
• •Configure CORS and rate limiting
• •Enable Application Insights monitoring
• •Store connection strings in Azure Key Vault

Validation & Testing

Validate Config Before Starting

dab validate && dab start

Validation checks:

1. •JSON schema correctness
2. •Entity configuration validity
3. •Database connectivity
4. •Environment variable resolution
5. •Permissions and policies

Test MCP Endpoint

Health check:

curl http://localhost:5000/health

List tools:

# Use MCP Inspector or VS Code MCP extension
# Connect to http://localhost:5000/mcp
# Verify 6 tools appear: describe_entities, create_record, read_records, update_record, delete_record, execute_entity

Test with AI Agent

VS Code Copilot Chat Examples:

"Which products have low inventory?"
"Show me all products under $50"
"What categories do we have?"
"How many units of Product X are in stock?"

Monitoring & Observability

Built-in Features

OpenTelemetry Tracing:

• •Every DML tool operation is traced
• •Correlate across distributed systems
• •Export to Application Insights, Jaeger, etc.

Health Checks:

• •/health endpoint for liveness/readiness
• •Per-entity health validation
• •Performance threshold monitoring

Logging:

• •Structured logs to Azure Log Analytics
• •Application Insights integration
• •Local file logs in containers

Enable Application Insights

dab configure --runtime.telemetry.application-insights.connection-string "@env('APPLICATIONINSIGHTS_CONNECTION_STRING')"

Migration & Upgrade Paths

Upgrading Existing DAB to MCP

Steps:

1. •Upgrade CLI: dotnet tool update microsoft.dataapibuilder --prerelease
2. •Update config file version (if needed)
3. •Add entity/field descriptions for AI context
4. •Test MCP endpoint: dab start
5. •Connect from MCP client

No breaking changes - MCP is additive to existing REST/GraphQL endpoints.

From Other MCP Database Solutions

Key differences:

• •SQL MCP Server uses entity abstraction (safer than direct schema exposure)
• •No NL2SQL - deterministic query generation only
• •Built-in RBAC, caching, monitoring
• •Single config for REST/GraphQL/MCP

Migration approach:

1. •Map existing schema to DAB entities
2. •Add semantic descriptions
3. •Configure equivalent permissions
4. •Test agent workflows
5. •Switch MCP client connection

Troubleshooting Guide

Problem: "MCP endpoint returns 404"

Checks:

• •Is DAB version 1.7+? Run dab --version
• •Is MCP enabled? Check runtime.mcp.enabled: true
• •Correct path? Default is /mcp, check runtime.mcp.path
• •Did you restart after config changes?

Problem: "Agent can't see any entities"

Checks:

• •Are entities added? Run dab validate
• •Does role have permissions? Check entity permissions config
• •Are entities excluded from MCP? Check mcp.dml-tools: false
• •Did agent call describe_entities first?

Problem: "Connection string not resolving"

Checks:

• •Is environment variable set? Check echo $DATABASE_CONNECTION_STRING
• •Using correct syntax? @env('VAR_NAME')
• •Is .env file in working directory? (local dev)
• •For Azure: Are secrets configured in Container Apps settings?

Problem: "Validation fails with database error"

Checks:

• •Can you connect to database with connection string?
• •Are tables/views/stored procedures spelled correctly?
• •Do they exist in the specified schema? (e.g., dbo.Products)
• •For views: Did you specify --source.key-fields?

Problem: "Agent queries are slow"

Solutions:

• •Enable caching: dab update <entity> --cache.enabled true --cache.ttl 300
• •Add database indexes on frequently queried columns
• •Review Application Insights for slow queries
• •Consider scaling up Container Apps CPU/memory

Problem: "Authentication fails from Foundry"

Checks:

• •Does auth mode match? (Foundry setting vs DAB runtime.host.authentication)
• •For Entra ID: Are audience and issuer correct?
• •Is token being passed correctly?
• •Check Container Apps logs for auth errors

Quick Reference: CLI Commands

Initialization

dab init --database-type mssql --connection-string "@env('CONNECTION_STRING')" --host-mode Development

Add Entities

# Table
dab add Products --source dbo.Products --permissions "anonymous:read" --description "Product catalog"

# View
dab add ProductSummary --source dbo.vw_ProductSummary --source.type view --source.key-fields "ProductId" --permissions "anonymous:read"

# Stored Procedure
dab add GetProducts --source dbo.usp_GetProducts --source.type stored-procedure --permissions "anonymous:execute" --graphql.operation query

Add Descriptions

# Entity
dab update Products --description "Product catalog with pricing and inventory"

# Fields
dab update Products --fields.name UnitPrice --fields.description "Retail price in USD"
dab update Products --fields.name ProductID --fields.description "Unique identifier" --fields.primary-key true

# Stored Procedure Parameters
dab add GetOrdersByDate \
  --source dbo.usp_GetOrdersByDate \
  --source.type stored-procedure \
  --permissions "authenticated:execute" \
  --parameters.name "StartDate,EndDate" \
  --parameters.description "Start date (inclusive),End date (inclusive)" \
  --parameters.required "true,true"

Configure MCP

# Enable/disable globally
dab configure --runtime.mcp.enabled true
dab configure --runtime.mcp.path "/mcp"

# Disable specific tools
dab configure --runtime.mcp.dml-tools.delete-record false

# Add server description
dab configure --runtime.mcp.description "Production inventory MCP endpoint"

Configure Authentication

# Entra ID
dab configure --runtime.host.authentication.provider EntraId
dab configure --runtime.host.authentication.jwt.audience "api://<app-id>"
dab configure --runtime.host.authentication.jwt.issuer "https://login.microsoftonline.com/<tenant-id>/v2.0"

# Update permissions for authenticated users
dab update Products --permissions "authenticated:*"

Validation & Start

dab validate
dab start
dab start --verbose
dab start --LogLevel Debug

Key Differences from Regular DAB

When to Recommend SQL MCP Server

Good fit:

• •User wants AI agents to access database safely
• •User needs controlled CRUD operations for agents
• •User requires RBAC for agent database access
• •User wants caching and monitoring built-in
• •User needs MCP-compatible database endpoint

Not a good fit:

• •User needs raw SQL execution from agents (use NL2SQL tools instead)
• •User needs schema modification (DDL) from agents
• •User only needs REST or GraphQL APIs (use regular DAB)

Migration candidates:

• •Existing DAB users adding AI agent capabilities
• •Custom MCP database servers wanting enterprise features
• •NL2SQL implementations wanting deterministic queries

References & Resources

Official Documentation

• •SQL MCP Server Overview
• •DML Tools Reference
• •Adding Descriptions
• •Configure Authentication

Quickstarts

• •VS Code Quickstart
• •Azure Container Apps Deployment
• •.NET Aspire Integration
• •Azure AI Foundry Integration

DAB Core Documentation

• •DAB CLI Reference
• •DAB Configuration Reference
• •Entity Configuration
• •Security & Authorization

Related Skills

• •See data-api-builder.md for comprehensive DAB CLI guidance
• •See dab-cli.skill.md for detailed command reference

Consistency Rules

1. •Always install prerelease version for v1.7+ features
2. •Require .gitignore with .env, **\bin, and **\obj entries before adding secrets
3. •Descriptions are critical for AI agent success - always recommend adding them
4. •MCP is enabled by default - only configure when restricting
5. •Security first - recommend managed identity + Entra ID for production
6. •Use entity abstraction - never recommend exposing raw schema to agents
7. •Validate before start - always dab validate && dab start
8. •Environment variables for secrets - use @env('VAR_NAME') pattern
9. •No NL2SQL - explain the NL2DAB deterministic approach
10. •RBAC applies to all tools - every operation respects role permissions
11. •Stdio for local, HTTP for remote - use appropriate transport

Version Notes

Current State (v1.7.x-rc):

• •SQL MCP Server is in preview
• •Must use --prerelease flag to install
• •Documentation and implementation may change
• •Not yet in :latest Docker tag

When GA releases:

• •Will be included in stable releases
• •:latest Docker tag will include MCP
• •May have config schema changes

Always check: dab --version to confirm 1.7+