In place upgrade or new installation when upgrading SQL Server

Steps

Key Official Guidance from Microsoft

The primary document is "Choose a Database Engine Upgrade Method" (applies to SQL Server 2022 and later):

• In-place upgrade: The Setup program replaces the old SQL bits and upgrades system/user databases on the existing installation.
  • Advantages: Easiest and quickest if everything stays on the same hardware/OS.
  • Disadvantages: More risk, longer potential downtime, harder rollback (old instance is overwritten).
  • Best for: Low-risk dev/test environments or noncritical production on recent hardware/software with minimal changes.
• New installation (side-by-side/migration): You build a fresh SQL Server 2022 instance (typically on new or upgraded hardware/OS), migrate system objects (logins, jobs, etc.), and move user databases (backup/restore, detach/attach, or SAN LUN repointing). Then cut over applications.
  • Advantages (direct quote emphasis): "The new installation approach reduces risk and downtime as compared to an in-place upgrade and facilitates hardware and operating system upgrades."
  • Best for: Any scenario involving hardware refresh, OS upgrade, server consolidation, or moving to a supported OS. It is explicitly called out for cases like yours.

This is reinforced in the "Plan and Test the Database Engine Upgrade Plan" guide, which notes that OS upgrades can limit or prevent safe in-place/rolling upgrades, and you should choose the method based on downtime tolerance and environment changes.

Why New Installation Is Better in Your Scenario (SQL 2016+ + OS Upgrade)

“For many productions and some development environments, a new installation upgrade or a rolling upgrade is more appropriate than an in‑place upgrade.” 

• Upgrading both SQL and OS together increases complexity and risk of issues (compatibility, pending restarts, driver changes, etc.).
• SQL Server 2022 runs on Windows Server 2016/2019/2022/2025, so you have flexibility.  However, a clean new build avoids carrying over any legacy configuration, orphaned objects, or accumulated cruft from years of patches.
• Easier rollback: Keep the old server running until the new one is fully validated.
• Better long-term hygiene: Fresh OS + fresh SQL aligns with Microsoft's end-of-support timelines (SQL 2016 extended support ends July 2026; older OS versions are also aging).
• You are consolidating, modernizing, or moving to new hardware

New installations are commonly used when hardware or OS is also being upgraded

Microsoft explicitly notes:

“A part of any upgrade planning cycle is to consider upgrading hardware and the operating system… these changes affect the type of upgrade method you choose.” 

In practice, this almost always pushes customers toward side‑by‑side rather than in‑place.

In-place for both (e.g., upgrade SQL 2016 -> 2022 on old OS, then in-place OS upgrade, or vice versa) is technically possible in many cases and discussed in Microsoft Q&A threads, but it is not presented as the preferred or lowest-risk method in the core upgrade documentation.

Recommended Approach (Microsoft-Aligned Best Practice)

1. Build new — Provision new hardware/VM(s) with the target Windows Server version (2022 or 2025 recommended) + fresh SQL Server 2022 installation.
2. Migrate  — Use backup/restore (or log shipping/Always On for minimal downtime), script logins/jobs, migrate SSIS/SSRS packages, etc.
3. Test thoroughly — Follow the planning checklist (hardware reqs, compatibility, performance testing with Distributed Replay, etc.).
4. Cut over — Update connection strings/DNS, then decommission old servers.

This applies uniformly to your mix of SQL versions (all 2016 and newer).

Microsoft Supports Direct Upgrade Path (SQL 2016 -> SQL 2022)

You can technically upgrade SQL Server 2016 -> 2022 directly:

“You can upgrade instances of SQL Server 2016 (13.x) directly to SQL Server 2022 (16.x).” 

But that assumes the OS already supports SQL Server 2022, which is often not the case if the OS is older (e.g., Windows Server 2012 R2 or 2016).

Thus, again, new installation is the practical recommendation.

Additional Official Resources

• Supported upgrade paths to SQL 2022
• Upgrade SQL Server overview
• Hardware/software requirements (confirms Win Server 2016+)
• Full planning/testing guide 

In‑place upgrades overwrite the existing instance (higher risk)

Microsoft warns:

“When you upgrade SQL Server, the previous version is overwritten and no longer exists… backup first.” 

Rollback becomes time‑consuming versus simply failing back to the old environment in a side‑by‑side approach.

About In‑Place Upgrades 

Microsoft describes in‑place upgrades as:

• Easiest method
• Requires downtime
• Harder to roll back
• Supported only when OS and hardware remain compatible

And typically used only for:

“A development environment … or a non‑mission‑critical production environment that can tolerate downtime.” 

If you are also upgrading the Windows Server version, in‑place upgrade feasibility often breaks.

Final Recommendation Based on Microsoft Guidance

Best practice for production:

Perform a NEW INSTALLATION (side‑by‑side) of SQL Server 2022 on a fresh, supported Windows OS.

This avoids:

• Compatibility issues
• Unsupported in‑place OS+SQL changes
• Extended downtime
• Difficulty rolling back
• Technical limitations when changing OS/hardware

Avoid an In‑Place Upgrade If:

• You are also upgrading Windows Server
• The environment is production or mission‑critical
• You want easy rollback
• You are moving to new hardware
• You want minimal downtime

All of these are common blockers documented by Microsoft.

When In‑Place Might Be Okay

• Dev/test environments
• Downtime is acceptable
• OS is already fully compatible with SQL Server 2022
• You are not changing hardware
• Risk tolerance is high