In Power Platform, environments are used to store, manage, and share your organization’s business data, apps, and flows. Each environment allows you to provision one Microsoft Dataverse database for use within that environment. Microsoft Dataverse environments allow you to manage user access, security settings, and the storage that is associated with that database.

Each environment is created under a Microsoft Azure Active Directory (Azure AD) tenant. Only users within that tenant can access its resources. An environment is also bound to a geographic location, like the United States. When you create a Microsoft Dataverse database in an environment, that database is created within datacenters in that geographic location. Any items that you create in that environment (including connections, gateways, flows that are using Power Automate, and more) are also bound to their environment’s location.