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App workspace creation is disabled

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Posted on by KS-07070747-0

I'm getting "Creation of app workspaces is disabled by your tenant admin, or you need permissions to create them. Please contact your tenant admin." when trying to create new workspace

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sannavajjala87 728 Super User 2026 Season 1 on at

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This error typically indicates that Power BI workspace creation has been restricted by your Power BI tenant administrator, rather than an issue with your user account.

Here are the most common things to check:

1. Verify the Power BI tenant setting

Go to Power BI Admin Portal → Tenant settings → Workspace settings.

Check Create workspaces (new workspace experience).

Ensure it's either:

Enabled for the entire organization, or

Enabled for a security group that includes your account.

2. Confirm your licensing

Make sure you have an appropriate Power BI license (Pro or Premium Per User, depending on your organization's requirements).

3. Check security group membership

Many organizations restrict workspace creation to specific Microsoft Entra ID security groups. If that's the case, ask your Power BI administrator to verify that your account is a member of the allowed group.

4. Verify you're in the correct tenant

If you belong to multiple Microsoft 365 tenants, ensure you're signed into the tenant where you have permission to create workspaces.

5. If you're not the Power BI admin

Contact your tenant administrator and ask them to verify:

Your license assignment.

The Create workspaces tenant setting.

Whether workspace creation is limited to specific security groups.

If you're the Power BI administrator and are still seeing this error, it may also be worth checking whether there are any Conditional Access policies or recently changed tenant settings affecting Power BI permissions.

A couple of questions that would help narrow this down:

Are you using Power BI Pro, PPU, or Fabric licensing?

Are you able to access the Power BI Admin Portal, or are you a regular user?

Is this happening for only your account or for everyone in your organization?

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