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I've tried configuring the data connection with the SQL native client provider and the SQL OLEDB provider and I see exactly the same results. If I close the file and re-open it, the password is gone from the data connection and the user cannot refresh the data. When I create a Powerpivot data connection to SQL server using SQL Server Authentication (unchanging read-only username and password), and checking the box to save the password, the connection works fine for refreshing the data as long as I leave the workbook

We don't have Powerpivot data refresh in Sharepoint active, so I can't make use of that service. I'm trying to create a Powerpivot workbook with data that users can refresh themselves before analysis.