Azure Digital Twins is Microsoft's platform for building a live digital model of a building, factory, grid or city. You describe your assets and how they relate using a modelling language called DTDL, feed in live IoT data, and query the model to see and predict what is happening. In 2026, the main question is how it fits alongside Microsoft Fabric, where Microsoft is now building its newer digital twin tools.
Updated October 2026
What changed in 2026
- Time Series Insights is gone. Twin history now goes to Azure Data Explorer or Fabric Real-Time Intelligence.
- Fabric Digital Twin Builder (preview) offers a low-code way to model assets for analytics teams.
- AI is reading the twin. Copilots and AI agents query twin graphs to answer questions such as "which chillers will breach temperature this week?"
- Edge first. Azure IoT Operations brings data in from the plant floor, with processing on-site before it reaches the cloud.
How Azure Digital Twins works
- Model: define asset types (pump, room, line) and relationships in DTDL, a JSON-based language.
- Build the graph: create twins for every real asset and link them (this pump is on line 3, in plant A).
- Connect data: route device telemetry from IoT Hub or IoT Operations into the twins, usually with Azure Functions.
- Query and react: query the graph, and push changes out through Event Grid, Event Hubs or Service Bus.
- Store history and analyse: send twin changes to Azure Data Explorer or Fabric for trends, dashboards and ML.
- Visualise: use Azure Digital Twins Explorer, 3D Scenes or Power BI.
Azure Digital Twins vs Fabric Digital Twin Builder
| Azure Digital Twins | Fabric Digital Twin Builder | |
|---|---|---|
| Built for | Developers building twin-powered apps | Analysts and operations teams |
| How you model | DTDL code and APIs | Low-code ontology in Fabric |
| Live events | Yes, event routes to other services | Focused on analytics and dashboards |
| Status (Oct 2026) | Generally available | Public preview |
| Choose it when | You are building an operational app or product | You want twin-style analytics on data already in Fabric |
Use cases in 2026
New to the idea? Start with what digital twin technology is and how it works.
- Smart buildings: occupancy, energy and comfort across a property portfolio.
- Manufacturing: line status, OEE and the knock-on effect of a stoppage.
- Energy and utilities: grid assets, substations and outage impact.
- Supply chain: warehouses, fleets and stock in one live model.
- Cities and campuses: traffic, parking and services.
Where it's heading: 2026 → 2030
| When | What it looks like |
|---|---|
| Around 2020 | Azure Digital Twins reaches general availability; twins are mostly 3D visuals and dashboards |
| 2026 (now) | Twins become a live data model that AI copilots and agents can query; analytics shifts into Fabric |
| By 2028 (expected) | Twins run what-if simulations continuously and suggest actions; machine vision and IoT data feed them in real time |
| By 2030 (expected) | Twins become the control layer for physical AI: agents and robots act on the twin, and people approve high-impact decisions |
The gap most teams hit is the step from "the twin shows a problem" to "something acts on it safely". NexaStack runs the AI models and agents at the edge that read twin data and take action, with every decision logged.
Frequently asked questions
What is Azure Digital Twins used for?
Building live digital models of buildings, factories, energy networks and cities, so teams can monitor, query and predict how they behave.
Is Azure Digital Twins being retired?
As of October 2026 it is generally available. Time Series Insights, often used with it, has been retired. Check Azure updates for the latest status.
What is DTDL?
Digital Twins Definition Language, a JSON-based language for describing assets, their properties and their relationships.
Azure Digital Twins or Fabric Digital Twin Builder?
Use Azure Digital Twins to build operational apps with live events; use Fabric Digital Twin Builder (in preview) for low-code twin analytics on Fabric data.
Make your digital twin act, not just report
See how NexaStack connects twin data to edge AI agents that take governed action on your assets. Book a 30-minute digital twin to action walkthrough →
