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Business Central 2026 Release Wave 1 Installation Guide: Requirements, Prerequisites, and Setup Walkthrough

Hi Readers,

Business Central 2026 Release Wave 1 requires Windows 11 or Windows Server 2022/2025, .NET 8, SQL Server compatibility level 160/170, and at least 16 GB RAM.

Introduction

Installing Business Central 2026 Release Wave 1 (BC28) starts with understanding the platform requirements. Many installation issues occur before Setup even begins because the operating system, SQL Server, or .NET components don't meet Microsoft's requirements.

This guide summarizes the key prerequisites and explains the installation process so consultants, developers, administrators, and partners can prepare a successful BC28 environment.

What Operating Systems Are Supported for BC28?

Business Central 2026 Release Wave 1 supports:

  • Windows Server 2025
  • Windows Server 2022
  • Windows 11 Pro
  • Windows 11 Enterprise
  • Windows 11 Education

Older operating systems should not be considered for new BC28 deployments.

For production environments, Windows Server remains the recommended choice.


What Hardware Requirements Should You Plan For?

Microsoft's minimum recommendations include:

Server Environment

  • 100 GB storage
  • 16 GB RAM for application workloads

Development Environment

  • 16 GB RAM for development
  • Four CPU cores minimum
  • 500 MB available disk space for development tools

Large Extension Development

For larger projects exceeding 1,000 objects:

  • 32–64 GB RAM recommended

This additional memory significantly improves extension publishing performance.


Which Software Components Are Required?

BC28 introduces several important platform requirements.

Server Components

Required:

  • Microsoft .NET 8.0
  • Microsoft .NET Framework 4.8

Web Components

Required:

  • IIS 10
  • Microsoft .NET 8.0

Development Components

Required:

  • Visual Studio Code
  • AL Language Extension

Report Development

Supported tools:

  • Report Builder for SQL Server 2019
  • Visual Studio 2019 with RDLC Designer
  • Word 2021 or later

What Are the SQL Server Requirements?

The database layer remains one of the most important prerequisites.

Business Central 2026 Release Wave 1 supports:

  • SQL Server compatibility level 160
  • SQL Server compatibility level 170
  • Azure SQL Database
  • Azure SQL Managed Instance

Organizations using Full-Text Search should ensure the SQL feature is installed before deployment.

For Azure SQL deployments using NCCI indexes, Microsoft recommends S3 or higher performance tiers.


Step-by-Step Guide

Step 1: Validate Operating System

Confirm Windows Server 2022/2025 or Windows 11 is installed.

Step 2: Verify Hardware

Check:

  • Available memory
  • CPU resources
  • Storage capacity

Step 3: Install or Verify SQL Server

Ensure:

  • Compatibility level 160 or 170
  • Full-Text Search feature enabled

Step 4: Verify .NET Components

Install:

  • .NET 8
  • .NET Framework 4.8

Step 5: Run Business Central Setup

Launch the installation media and begin setup.

Step 6: Configure Server Instance

Specify:

  • Service instance
  • Database connection
  • Authentication configuration

Step 7: Install Web Components

Allow Setup to configure IIS and Web Client components.

Step 8: Verify Services

Check:

  • BC Server service
  • Web Client
  • Database connectivity

Step 9: Test Login

Open the Web Client and confirm successful sign-in.


Common Mistakes

  • Using unsupported Windows versions
  • Forgetting .NET 8 requirements
  • Underestimating memory requirements
  • Missing SQL Full-Text Search
  • Ignoring compatibility level requirements
  • Running installations without administrator rights
  • Skipping IIS validation
  • Testing development workloads on underpowered machines

FAQ

Does BC28 support local installations?

Yes. BC28 supports local on-premises installations.

Is Windows Server 2019 supported?

Check Microsoft's latest support documentation. New deployments should use supported operating systems listed for BC28.

Do developers need 64 GB RAM?

Not necessarily. It becomes beneficial for larger extension projects.

Is IIS required?

Yes. Business Central Web Server Components require IIS.

Can SQL Express be used?

Yes. Setup can install SQL Server Express in supported scenarios.

Does Setup install prerequisites automatically?

Many prerequisites are installed automatically if missing.


Conclusion

Business Central 2026 Release Wave 1 modernizes the on-premises platform with .NET 8 support, updated Windows requirements, and SQL compatibility enhancements.

Preparing the environment correctly before running Setup eliminates most installation issues and results in a smoother deployment experience.

🎥 Watch the Full Explanation on YouTube

This blog summarizes the concept—but seeing it explained visually, with real Business Central screens, makes it click instantly.

👉 Watch the full video on YouTube for a step-by-step walkthrough and live examples.


If this helped, consider subscribing to Saurav Dhyani YouTube Channel for more Business Central concepts explained clearly and practically.

Regards,

Saurav Dhyani

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