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Explainer

What is a data lakehouse? A plain-English explanation

A data lakehouse combines the low-cost, open storage of a data lake with the transactions, governance and fast SQL of a data warehouse. How it works, how it differs from a warehouse and a lake, and when it fits.

Hemant Walchale

Hemant Walchale
· 4 min read

A data lakehouse is a data architecture that keeps all your data as open files in low-cost cloud storage, like a data lake, and adds the features that used to require a data warehouse: reliable transactions, enforced schemas, governance and fast SQL. The result is one copy of the data that reporting, data science and AI can all use.

Comparison of a data warehouse, a data lake and a data lakehouse: the warehouse has fast SQL and strong governance but proprietary storage and weak support for ML and files; the lake has open, cheap storage for any file but no transactions and weak governance; the lakehouse combines open formats, ACID tables, fast SQL, ML on the same data, one governance layer and one copy of the data.

Why the lakehouse appeared

For years, organizations ran two systems:

  • A data warehouse for reporting: structured, governed and fast, but expensive for large volumes and poor at files, events and machine learning.
  • A data lake for everything else: cheap storage for any file, popular with data scientists, but with no transactions, weak governance and a tendency to become a “data swamp”.

Data was copied from the lake to the warehouse, so teams paid for two copies, two pipelines and two sets of permissions, and the two often disagreed.

How a lakehouse works

The key ingredient is an open table format, such as Delta Lake, Apache Iceberg or Apache Hudi. It adds a transaction log on top of ordinary data files (usually Parquet) in cloud storage, which gives you:

  • ACID transactions: writes succeed completely or not at all, so readers never see half-written data.
  • Schema enforcement and evolution: bad records are rejected, and columns can be added safely.
  • Time travel: query a table as it was at an earlier point.
  • Fast queries: file statistics let engines skip data they do not need.

On top of that sit a governance layer (for example Unity Catalog on Databricks) and query engines for SQL, Python and machine learning, all reading the same tables.

Lakehouse, warehouse or lake?

Data warehouse Data lake Data lakehouse
Data types Structured tables Any file Any file and tables
Storage format Proprietary Open Open (Delta, Iceberg)
Transactions Yes No Yes
SQL and BI performance Strong Weak Strong
Machine learning and AI Weak Strong Strong
Governance Strong Weak Strong, in one layer
Copies of the data One per system One per system One

Where you will find lakehouses

  • Databricks is built around the lakehouse, with Delta Lake and Unity Catalog.
  • Microsoft Fabric stores all data as Delta tables in OneLake.
  • Snowflake supports Apache Iceberg tables alongside its native tables.
  • Google Cloud offers BigLake for open-format tables queried by BigQuery and other engines.

Most estates are organized into layers inside the lakehouse, commonly the medallion architecture.

When a lakehouse fits, and when it doesn’t

It fits when you have files, events or documents as well as tables, when data science or AI matter, when you want to stop copying data between systems, or when you want to keep data in open formats you control.

A warehouse may be simpler when your data is almost entirely structured and used only for reporting by SQL analysts.

The short version

A data lakehouse puts warehouse features (transactions, schemas, governance, fast SQL) on top of open files in cheap cloud storage, so reporting, data science and AI share one governed copy of the data.

Related: medallion architecture, Unity Catalog, and Databricks vs Snowflake. Moving to a lakehouse from a legacy warehouse? See our migration guides or the data engineering glossary.

Sources

Not sure where your own platform stands? Take the free 3-minute data platform scorecard, or see how we work on Databricks. Unfamiliar terms are explained in the data engineering glossary.

Frequently asked questions

What is a data lakehouse in simple terms?

A data lakehouse keeps all your data as open files in low-cost cloud storage, like a data lake, but adds the features of a data warehouse on top: reliable transactions, enforced schemas, access control and fast SQL. Reporting, data science and AI can then use one copy of the data.

What is the difference between a data lakehouse and a data warehouse?

A data warehouse stores structured tables in its own storage format and is optimized for SQL and BI. A lakehouse stores data in open formats (such as Delta Lake or Apache Iceberg) in your own cloud storage, handles files and semi-structured data as well as tables, and serves machine learning on the same data, while offering similar SQL performance and governance.

Which platforms are lakehouses?

Databricks is built around the lakehouse. Microsoft Fabric stores all data as Delta tables in OneLake. Snowflake supports Apache Iceberg tables, and Google Cloud offers BigLake. The term describes an architecture, so most modern platforms now support it to some degree.

Do we need a lakehouse?

Not always. If your data is almost entirely structured and used only for reporting, a data warehouse is simpler. A lakehouse pays off when you also have files, events or documents, run data science or AI, or want to avoid copying data between a lake and a warehouse.

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