@Andy_M - welcome to the community!!
If the Connector (Atlas SQL Power BI) and Driver (ODBC) work successfully with Power BI Desktop, but not with Power BI Service and the Gateway the issue is likely a problem with configuration on the “server” computer where the gateway is installed. Here are a few things to try:
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For the server computer where the gateway is installed, was this IP address added to the whitelist within Atlas?
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Where are you getting this error? Is it when setting up the Gateway within Power BI Service? The same driver is used for both Desktop and the Gateway, though sometimes that server where the Gateway is installed gives an error when the connector can’t access the driver dll file. But I believe that typically gives another error stating can’t access the dll.
Let me know if you would rather email me (any screen shots for security purposes), and we can troubleshoot this further: alexi.antonino@mongodb.com