Integrate Cursor with Live Microsoft Dataverse Data via CData Connect AI

Yazhini G
Technical Marketing Engineer

Leverage the CData Connect AI Remote MCP Server to enable Cursor to securely access and act on live Microsoft Dataverse data from within the editor.

Cursor is an AI-powered code editor that embeds conversational and agent-style assistance alongside your development workflow. By extending Cursor with MCP (Model Context Protocol) tools, you can give its AI agents secure access to external systems such as APIs and databases.

Integrating Cursor with CData Connect AI via the built-in CData MCP Server allows the editor's AI to query, analyze, and act on live Microsoft Dataverse data without copying data into the IDE. The result is a development experience where you can chat with your governed enterprise data directly from Cursor.

This article outlines how to configure Microsoft Dataverse connectivity in Connect AI, generate the required access token, register the CData MCP Server in Cursor, and then use the AI chat pane to explore live Microsoft Dataverse data.

About Microsoft Dataverse Data Integration

CData provides the easiest way to access and integrate live data from Microsoft Dataverse (formerly the Common Data Service). Customers use CData connectivity to:

Access both Dataverse Entities and Dataverse system tables to work with exactly the data they need.
Authenticate securely with Microsoft Dataverse in a variety of ways, including Azure Active Directory, Azure Managed Service Identity credentials, and Azure Service Principal using either a client secret or a certificate.
Use SQL stored procedures to manage Microsoft Dataverse entities - listing, creating, and removing associations between entities.

CData customers use our Dataverse connectivity solutions for a variety of reasons, whether they're looking to replicate their data into a data warehouse (alongside other data sources)or analyze live Dataverse data from their preferred data tools inside the Microsoft ecosystem (Power BI, Excel, etc.) or with external tools (Tableau, Looker, etc.).

Getting Started

Step 1: Configure Microsoft Dataverse connectivity for Cursor

Connectivity to Microsoft Dataverse from Cursor is made possible through CData Connect AI's Remote MCP Server. To interact with Microsoft Dataverse data from Cursor, start by creating and configuring a Microsoft Dataverse connection in CData Connect AI.

Log into Connect AI, click Sources, and then click Add Connection

Select Microsoft Dataverse from the Add Connection panel

Enter the necessary authentication properties to connect to Microsoft Dataverse.
You can connect without setting any connection properties for your user credentials. Below are the minimum connection properties required to connect.
- InitiateOAuth: Set this to GETANDREFRESH. You can use InitiateOAuth to avoid repeating the OAuth exchange and manually setting the OAuthAccessToken.
- OrganizationUrl: Set this to the organization URL you are connecting to, such as https://myorganization.crm.dynamics.com.
- Tenant (optional): Set this if you wish to authenticate to a different tenant than your default. This is required to work with an organization not on your default Tenant.
When you connect the Common Data Service OAuth endpoint opens in your default browser. Log in and grant permissions. The OAuth process completes automatically.
Click Save & Test
Navigate to the Permissions tab and update user-based permissions

Add a Personal Access Token

A Personal Access Token (PAT) is used to authenticate the connection to Connect AI from Cursor. It is best practice to create a separate PAT for each integration to maintain granular access control.

Click the gear icon () at the top right of the Connect AI app to open Settings
On the Settings page, go to the Access Tokens section and click Create PAT
Give the PAT a descriptive name and click Create

The personal access token is only visible at creation, so be sure to copy it and store it securely for future use

With the Microsoft Dataverse connection configured and a PAT generated, Cursor can now connect to Microsoft Dataverse data through the CData MCP Server.

Step 2: Configure the CData MCP Server in Cursor

Next, configure Cursor to use the CData MCP Server. Cursor reads MCP configuration from an mcp.json file in the user configuration directory and exposes the registered servers under the Tools & MCP settings. Once configured, Cursor's AI chat can call the tools exposed by CData Connect AI.

Download the Cursor desktop application and complete the sign-up flow for your account
From the top menu, click Settings to open the settings panel
In the left navigation, open the Tools & MCP tab and click Add Custom MCP
Cursor opens an mcp.json file in the editor

Add the following configuration. Make sure to base64-encode your email:PAT before inserting into the header:

{
  "mcpServers": {
    "cdata-mcp": {
      "url": "https://mcp.cloud.cdata.com/mcp",
      "headers": {
        "Authorization": "Basic your_base64_encoded_email_PAT"
      }
    }
  }
}

Configuring mcp.json with CData MCP Server

Save the file
Return to Settings and then select Tools & MCP. You can now see cdata-mcp enabled with an active indicator

Step 3: Chat with CData Connect AI from Cursor

From the top bar, click Toggle AI Pane to open the chat window
Test the connection by entering "List connections"
You can also run queries like "Query Microsoft Dataverse data and list the high priority accounts"