You have three options:
- Specify that encryption is optional. (Modern drivers defaults to required it.)
- Select the option Trust Server Certificate.
- Install a proper certificate from a trusted certificate provider on the SQL Server instance.
The latter is likely to be more work, and may also incur extra costs. However, you need to weigh that against the alternatives. With no encryption, anyone can eavesdrop on the communication. With the second alternative, someone can still get in the way and present itself as the SQL Server instance with a certificate. This is a so-called man-in-the-middle attack. The more sensitive your data is, the more compelling it is to use proper encryption.
For details on how to set these options with PowerBI, it may be better to use the PowerBI forum at https://learn.microsoft.com/power-bi/.