The Microsoft SQL Server geography spatial type is a geodetic type that uses latitude/longitude measurements; it does not support projected coordinate systems.
Therefore, when creating a feature class using the SQL Server geography spatial type and a projected coordinate system, an error message similar to one of the following will be returned:
• "Failed to create feature class. The given coordinate references are incompatible."
• "Failed to create feature class. The dataset is not supported at the workspace level."
To successfully create the feature class, chose one of the options below:
• Use a supported geographic coordinate system, such as WGS84.
• Use SQL Server geometry or SDEBINARY storage and choose a projected coordinate system.
Data stored in the SQL Server geography type must use one of the spatial reference systems defined in SQL Server. To see a list of supported spatial reference systems, query the SQL Server sys.spatial_reference_systems catalog view.