Hello Joe H,
Thanks for your question.
Yes, you can limit Power BI API permissions by workspace using a service principal.
- Register your application in Entra ID to obtain a client ID and client secret.
- Use Power BI Service to assign it to workspaces with appropriate roles. https://video2.skills-academy.com/en-us/power-bi/developer/embedded/embed-service-principal#register-an-application-in-azure-ad
- Assign Service Principal to Workspaces using Add-PowerBIWorkspaceUser
- Use Power BI REST API to Manage Workspace-Specific Permissions
You can mark it 'Accept Answer' and 'Upvote' if this helped you
Regards,
Abiola