An example of creating an SMO connection using the SmoRenewableToken module

SmoWithAccessToken.ps1

Import-Module SmoRenewableToken

# You must run Connect-AzAccount so that an access token can be obtained from Az.Accounts
Connect-AzAccount

$SmoRenewableToken = New-SmoRenewableToken

# Replace these values with the values for your Azure SQL server/database
$Server     = "myazuresqlserver.database.windows.net"
$Database   = "MyDatabase"

$ConnectionInfo = [Microsoft.SqlServer.Management.Common.SqlConnectionInfo]::new($Server)
$ConnectionInfo.DatabaseName = $Database
$ConnectionInfo.AccessToken  = $SmoRenewableToken
$ConnectionInfo.UserName     = $SmoRenewableToken.UserId

$ServerConnection = [Microsoft.SqlServer.Management.Common.ServerConnection]::new($ConnectionInfo)
$ServerInstance   = [Microsoft.SqlServer.Management.Smo.Server]::new($ServerConnection)
$DatabaseInstance = $ServerInstance.Databases | where Name -EQ $Database