1. Can we access local network data sources in Power Apps? Or can we connect Power apps with local SQL Server?

Yes, we can easily connect to the local network data sources. Use the on premises Data gateway for that.

 

On Permises Data Gateway

The On-premises Data Gateway acts as a bridge to provide quick and secure data transfer between on-premises data (data that isn’t in the cloud) and several Microsoft cloud services like Power BI, Power Apps, Power Automate, Azure Analysis Services, and Azure Logic Apps.

You can download on permises data gateway from this  location.
Once downloaded, Run the downloaded executable to install and configure the on-premises data gateway.

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