- Wide tables in columnar DBs can make some analytics queries easier to write and sometimes more performant.
- Wide tables can come at high storage cost and make other queries less performant (like SELECT *)
- How much of these things happen is extremely DB dependent. How does the DB's underlying storage mechanism work? How is the data partitioned and distributed? How sophisticated and storage-aware is the query planner? How large is your data? How fast is your data growing? How fast do you need a new data point to be reflected in your dashboard?
There's no free lunch when it comes to this stuff. A perfect solution doesn't exist, but the technology is getting better all the time. I've personally never used sql server as a data warehouse but plenty of folks do.
The stuff I use that I recommend very highly - Snowflake, TimescaleDB, vanilla Postgres. Also, use dbt.