Introduction

As the volume, velocity, and variety of data continue to grow, modern data platforms must balance performance, governance, and scalability. Microsoft has long dominated this space with Azure Data Lake Storage (ADLS), a cloud-native, hyperscale repository for big data analytics. But with the launch of Microsoft Fabric, a new unified data platform, came OneLake, a built-in data lake designed to streamline data access across Microsoft’s analytics stack.

Both solutions store massive amounts of structured and unstructured data, but they serve different purposes and audiences. OneLake is optimized for Fabric-native workloads and governed simplicity, while Azure Data Lake offers a more customizable, enterprise-grade data storage foundation. Understanding their differences is key for data teams evaluating data lake strategies, especially those already invested in the Microsoft ecosystem.

Understanding the Platforms

What is OneLake?

OneLake is Microsoft’s unified, software-defined data lake that powers all Fabric workloads, including Power BI, Synapse Data Engineering, Data Factory, Real-Time Analytics, and Data Science. It is:

  • Deeply embedded within Microsoft Fabric

  • Built on ADLS Gen2

  • Supports open data formats such as Delta Lake, Parquet, and Apache Arrow

  • Designed for zero-copy data virtualization

It functions like a OneDrive for data”, automatically managing storage, security, and discoverability across all Fabric tenants and workspaces.

What is Azure Data Lake?

Azure Data Lake Storage (ADLS) is a mature, scalable cloud storage solution built on top of Azure Blob Storage. It comes in two generations:

  • Gen1 (now deprecated)

  • Gen2 (current)

ADLS is ideal for teams needing:

  • High throughput for big data workloads

  • Compatibility with tools like Azure Synapse, Databricks, Apache Spark

  • Deep control over data layout, storage tiers, and access permissions

Architecture & Storage Model

OneLake Architecture

  • Single, unified storage layer for all Fabric experiences

  • Built on ADLS Gen2

  • Item-level architecture

  • Virtualization over duplication via shortcuts

Key advantage: Data stays in one place, but can be reused by multiple engines (e.g., Power BI, Spark, SQL) without transformation or ETL.

Azure Data Lake Architecture

  • Uses a Hadoop-compatible file system (HDFS) layered over Blob storage

  • Supports hierarchical namespaces

  • Offers partitioning, tiered storage, and dual API access

  • Requires external integration for governance and analytics

Key advantage: Full flexibility and granular control for complex, high-scale workloads.

Integration and Ecosystem Support

OneLake

  • Native integration with Fabric tools:

    • Power BI

    • Synapse Data Engineering

    • Data Factory

  • Limited support for third-party tools

  • Supports data virtualization via shortcuts

Azure Data Lake

  • Integrates with:

    • Azure Synapse Analytics

    • Azure Databricks

    • HDInsight

    • Azure Machine Learning

    • Third-party ETL tools

  • Multi-cloud friendly

  • Broad tool ecosystem and API compatibility

Data Access and Governance

OneLake

  • Governed via embedded Microsoft Purview

  • Workspace-based RBAC model

  • Built-in classification, lineage, and auditing

  • Centralized DLP and compliance management

Azure Data Lake

  • Access controlled through Azure RBAC and IAM

  • POSIX-style ACLs for file-level permissions

  • Requires manual governance setup via Azure Purview

  • Supports custom policy enforcement and classification

Performance and Scalability

OneLake

  • Direct Lake Mode for high-speed Power BI access

  • Multi-engine support without data duplication

  • Auto-optimization of layout and metadata

  • Elastic scaling tied to Fabric compute capacity

Azure Data Lake

  • Optimized for Spark/Hadoop workloads

  • Fine-tunable with partitioning and block sizes

  • Storage tiering for cost/performance flexibility

  • Supports vendor-neutral, distributed processing

Use Cases

Use Case

Best Fit

Reason

Power BI-centric analytics

OneLake

Direct Lake support eliminates refresh delays

Real-time reporting

OneLake

Native integration with Fabric Real-Time Analytics

Custom Spark pipelines

Azure Data Lake

Mature Spark support with low-level tuning

Machine learning at scale

Azure Data Lake

Better integration with Azure ML, Databricks

Data democratization across departments

OneLake

Workspace-based access and unified governance

Enterprise multi-cloud data lakes

Azure Data Lake

More flexible for hybrid and multi-cloud setups

Pricing

OneLake

  • Bundled into Fabric SKUs (Capacity Units)

  • Unified billing across Fabric services

  • No separate per-operation storage pricing

  • Opaque but simplified cost structure

Azure Data Lake

  • Pay-as-you-go model:

    • Storage tier costs

    • Operation costs

  • Full billing transparency

  • Ideal for cost optimization via usage tuning

Pros and Cons Summary

OneLake

Pros

  • Unified storage for all Fabric services

  • Fast Power BI performance via Direct Lake

  • Integrated governance and compliance

  • Virtualized access via shortcuts

Cons

  • Requires Microsoft Fabric

  • Limited third-party tool support

  • Less granular billing control

  • Still maturing product

Azure Data Lake

Pros

  • Mature, widely adopted

  • Supports extensive analytics tools

  • Full architectural flexibility

  • Transparent, detailed billing

Cons

  • Requires orchestration and manual setup

  • Steeper operational complexity

  • Governance is external, not embedded

Which One Should You Choose?

Decision Factor

Prefer OneLake

Prefer Azure Data Lake

Platform usage

Microsoft Fabric-native

Custom big data pipelines

Business intelligence

Power BI-led analytics

Third-party BI tools

Operational complexity

Prefer simplicity

Need deep configuration

Tool flexibility

Stick with Microsoft stack

Integrate with other tools

Cost management

Flat-rate SKU pricing

Pay-per-use transparency

Ecosystem maturity

Early adopter

Proven at scale

Hybrid Option: Use Azure Data Lake for raw storage and OneLake for analytics workloads via shortcuts, combining flexibility and performance.

Bridging Azure and Fabric with Integrate.io

Choosing between OneLake and Azure Data Lake doesn’t have to be a binary decision. Many teams will find value in operating hybrid architectures, for instance, storing raw data in Azure Data Lake for governance, and pushing curated datasets into OneLake for analytics via Power BI.

This is where tools like Integrate.io come in.

Integrate.io is a no-code/low-code ETL and ELT platform that enables you to:

  • Move data from hundreds of sources (SaaS apps, databases, warehouses) into Azure Data Lake or OneLake.

  • Design data pipelines visually, without managing Spark infrastructure or writing code.

  • Orchestrate data transformations and syncs between Azure Blob, ADLS Gen2, OneLake, Snowflake, Redshift, and more.

  • Build incremental syncs and control data freshness, critical in BI scenarios with Direct Lake mode.

For teams migrating to Microsoft Fabric or operating across multiple clouds, Integrate.io acts as a connective layer, making it easier to unify your stack without heavy lifting.

Final Thoughts

Microsoft has introduced OneLake as the backbone of its next-generation data platform with Fabric, prioritizing ease-of-use, governance, and native integration for analytics-first teams. For companies deeply invested in Power BI and seeking a centralized experience for analytics, OneLake is the natural choice.

However, Azure Data Lake continues to be the preferred platform for large-scale, complex, and multi-cloud data engineering pipelines. Its openness, maturity, and flexibility make it suitable for teams running highly customized data stacks.

It’s possible for both to coexist:

  • Use Azure Data Lake for ingestion and raw data lake

  • Use OneLake for modeling, analysis, and end-user consumption

Start a free trial of Integrate.io and see how easy it is to build scalable pipelines into Microsoft Fabric.

FAQs

Q1. Can I migrate from Azure Data Lake to OneLake?

You don’t need to physically migrate. Instead, you can shortcut your ADLS folders into OneLake and access them natively within Fabric services.

Q2. Is OneLake available outside Microsoft Fabric?

No. OneLake is a Fabric-native offering. It does not function as a standalone storage service like ADLS.

Q3. Does OneLake support Delta Lake and Parquet?

Yes. OneLake natively supports Delta, Parquet, and CSV formats, enabling seamless compatibility with Spark and SQL engines in Fabric.

Q4. What is Direct Lake mode in Power BI?

It’s a new data access mode where Power BI reads parquet/Delta files directly from OneLake without import or query pushdown, reducing latency and refresh cycles.

Q5. Can I use third-party ETL tools with OneLake?

Limited. Most current support is Fabric-native. Azure Data Lake is better suited for broader tool integration.