Unlocking the Power of PostgreSQL with Azure: A Developer’s Guide

Nowadays, there’s little debate about the impact of Artificial Intelligence (AI) on our daily lives and industries. Almost a century after the term was first introduced at Dartmouth College, AI has shifted from science fiction to an essential component of modern technology. As a result, developers are now expected to integrate AI capabilities into their workflows. No matter the system—be it computing, storage, or databases—everything needs to be ready to handle AI.

The Next-Gen Database Experience

With the rise of AI applications, the demand for databases that are dependable, adaptable, and secure has never been higher. Developers now require databases that not only meet these standards but also integrate seamlessly with AI tools. In fact, over 80% of developers are using AI to boost their productivity, and this is reshaping the development landscape.
Among the various options, PostgreSQL has emerged as a standout choice. It’s now the starting point for numerous applications and projects, with 78.6% of developers favouring it for AI and real-time applications.

Why Choose PostgreSQL on Azure?

Selecting the right ecosystem is vital for achieving your AI dreams. At Microsoft, we see PostgreSQL as a community, not just a product. We are proud contributors, with over 500 updates in the latest release, continually enhancing PostgreSQL as the go-to database for developing intelligent applications. Together with Azure, we’re creating the perfect environment to run your projects.

The Azure Database for PostgreSQL is designed to support both lift-and-shift migrations and new open-source projects, offering impressive performance and user experience. The recent release of Azure HorizonDB at Ignite marks our commitment to future technology, providing a PostgreSQL-compatible cloud service designed for scalability and ultra-low latency. This ensures Azure is ready to support everything from simple apps to complex AI systems.

Streamlined and Intelligent Developer Experience

Building intelligent applications shouldn’t be a daunting task. We’re dedicated to creating a smooth experience on the Azure Database for PostgreSQL, especially for those focused on AI. From setup to AI integration, we’ve revamped the developer journey to eliminate any obstacles.

Get Started with Your Favourite IDE

Your adventure starts in Visual Studio Code, the preferred integrated development environment (IDE) among developers. With our PostgreSQL extension, you can easily set up secure, fully managed PostgreSQL instances directly from the IDE—no complex setups required. Just a few clicks, and your database is ready to go, complete with support for Entra ID authentication and Azure Monitor.

Next, you can lean on GitHub Copilot as your smart assistant. It understands your PostgreSQL schema and guides you in writing, optimising, and troubleshooting SQL queries with natural language. Whether you’re joining tables or improving performance, Copilot is there to help save you time.

Intelligent Integration Within Your Database

Once your database is up and running, integrating AI into your applications is just a query away. The Azure Database for PostgreSQL now seamlessly connects with Microsoft Foundry, allowing developers to use pre-provisioned large language models (LLMs). This means you can generate embeddings, classify text, or even conduct semantic searches right from your database.

For applications prioritising speed and relevance, DiskANN vector indexing offers high-performance similarity searches. With semantic ranking, your queries yield faster, more accurate results—perfect for intelligent agents and natural language interfaces.

Create AI Agents with Microsoft Foundry

When it’s time to develop AI agents, the integration with Microsoft Foundry makes the process straightforward. The new Model Context Protocol (MCP) server for PostgreSQL enables developers to link directly with Foundry’s agent framework using just a few clicks. This empowers agents to reason over your data, invoke LLMs, and act on key insights while benefiting from Azure’s high-level security.

This collaboration of PostgreSQL structured data, Foundry orchestration, and Azure AI models forms a powerful environment for creating intelligent, context-aware applications.

Achieve Rapid Insights

Intelligent applications thrive on fresh insights. With Azure Database for PostgreSQL, you can easily mirror your operational data into Microsoft Fabric for real-time analytics without performance hiccups. Moreover, the Azure Storage Extension now supports reading from and writing directly to Parquet files stored in Azure, using SQL commands, which simplifies your workflows.

Performance and Scalability to Match Your Growth

Security and performance are crucial. We’ve innovated continually to enhance performance and scalability for even the most demanding AI workloads. With PostgreSQL 18 now available on Azure, you can expect faster I/O, enhanced vacuuming, and smarter query planning. Our new V6 compute SKUs increase throughput while reducing latency, and Elastic Clusters allow for horizontal scaling, making it easier to manage multi-tenant and high-volume workloads.

Whether you’re launching a startup MVP or expanding a global AI platform, Azure Database for PostgreSQL is equipped to grow alongside your ambitions. Customers in sectors ranging from pharmaceuticals to finance are harnessing these advancements to gain competitive advantages.

Real-World AI Innovations: Nasdaq’s Governance Overhaul

When you think of Nasdaq, you might envision bustling trading floors and rapid financial transactions. Yet, Nasdaq also oversees board governance for thousands of organisations, including nearly half of the Fortune 500. At Ignite, they unveiled how they revamped their Boardvantage platform using Azure Database for PostgreSQL and Microsoft Foundry. Their aim was to harness AI to help directors sift through extensive board packets safely and efficiently.

The outcome? An advanced governance platform that utilises AI to summarise meeting minutes, identify anomalies, and highlight pertinent decisions, all while keeping data secure.

Looking to the Future: Azure HorizonDB

Also at Ignite, we introduced Azure HorizonDB—a fully managed, PostgreSQL-compatible service designed for AI workloads. With scalable computing, sub-millisecond latency, and built-in AI features, Azure HorizonDB is a glimpse into the future of cloud databases. While currently in private preview, it paints an exciting picture of what lies ahead.

Join Us on the Path to Future-Ready Solutions

At Microsoft, we are committed to empowering developers with databases equipped for the next generation, whether they be SQL, NoSQL, relational, or open source. With sustained support and enhancements for PostgreSQL, this platform is now equipped for the demands of intelligent applications and agents. Whether you’re a startup integrating your first AI feature or a large enterprise modernising critical systems, Azure offers the tools you need to progress quickly, develop intelligently, and scale confidently.

The future of intelligent applications is being built with PostgreSQL, and we’re excited to embark on this journey with you on Azure.

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