While working with Linked Servers, OPENQUERY, or OPENROWSET in SQL Server, you may encounter one of the most common and frustrating errors:
OLE DB provider "Microsoft.ACE.OLEDB.12.0" for linked server "(null)" returned message "Cannot initialize data source object of OLE DB provider".

This error usually occurs when SQL Server is unable to access or initialize the external data source (like Excel, Access, or another SQL Server).

In this guide, we’ll break down:

• The main causes of this error
• Step-by-step troubleshooting
• Common scenarios (Excel, Access, Linked Servers)
• Configuration & security fixes

Common Scenarios Where the Error Appears

If any of these fail, you’ll often see the “Cannot initialize data source object” error.

Root Causes of the Error

Here are the most common reasons this error occurs:

Step-by-Step Troubleshooting Guide
Step 1: Check File Permissions

• Locate the file (e.g., C:\Data\Sales.xlsx).
• Right-click → Properties → Security tab.
• Ensure the SQL Server service account (like NT SERVICE\MSSQLSERVER or Network Service) has read/write permissions.

If not sure which account SQL uses, run:
SELECT servicename, service_account
FROM sys.dm_server_services;

Step 2: Enable Ad Hoc Distributed Queries
Run the following in SSMS:
EXEC sp_configure 'show advanced options', 1;
RECONFIGURE;
EXEC sp_configure 'Ad Hoc Distributed Queries', 1;
RECONFIGURE;

Then re-run your OPENROWSET or OPENDATASOURCE query.

Step 3: Verify OLE DB Provider Installation
Check if the required OLE DB provider is installed:
For Excel/Access → Microsoft.ACE.OLEDB.12.0
For SQL Server-to-SQL Server → SQLNCLI or MSOLEDBSQL

You can verify it using:
EXEC master.dbo.sp_enum_oledb_providers;

Step 4: Check 32-bit vs 64-bit Compatibility
SQL Server (64-bit) requires a 64-bit version of the OLE DB provider.

If you’re running a 32-bit SSMS, but the server uses 64-bit SQL, install both provider versions or run your query via SQL Server Agent Job.

Step 5: Ensure File Is Closed and Accessible
If the Excel file is open by another user or locked for editing, SQL can’t read it.
Close the file and retry.

If it’s on a network path, ensure:
\\ServerName\SharedFolder\File.xlsx

is accessible from the SQL Server machine using the same service account credentials.

Step 6: Test Connection String
Try running this minimal query:
SELECT *
FROM OPENROWSET(
    'Microsoft.ACE.OLEDB.12.0',
    'Excel 12.0;Database=C:\Data\Test.xlsx;HDR=YES',
    'SELECT TOP 5 * FROM [Sheet1$]'
);

If it works with a simple file, the issue is likely your original path or sheet name.

Step 7: Configure Linked Server Options
If using Linked Server for Excel or Access:
EXEC sp_addlinkedserver
    @server='ExcelLink',
    @srvproduct='Excel',
    @provider='Microsoft.ACE.OLEDB.12.0',
    @datasrc='C:\Data\Sales.xlsx',
    @provstr='Excel 12.0;HDR=YES';

EXEC sp_serveroption 'ExcelLink', 'Data Access', TRUE;

Then test:
SELECT * FROM OPENQUERY(ExcelLink, 'SELECT * FROM [Sheet1$]');

Advanced Troubleshooting Tips

• Reboot the SQL Service after installing new OLE DB drivers.
• If you’re running on SQL Server Express, ensure it supports Distributed Queries.
• Avoid UNC paths (\\Server\Folder\File.xlsx) unless the SQL service has domain permissions.

Check Event Viewer logs under Application → MSSQLSERVER for detailed provider errors.

Alternative Approaches

If the problem persists, consider alternatives:

• Use Import/Export Wizard (in SSMS) instead of OPENROWSET.
• Use BULK INSERT for CSV data.
• For Access, use ODBC Linked Tables or .NET Integration in your application layer.

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