The M1 Mac processor is incredibly powerful when fully supported by the software you are running, but otherwise you may have issues.  I've recently adopted the M1 processor for my main workstations, in this series you will find solutions for problems that I encounter that I feel are worth sharing.

Builds are not yet available for ARM64 architecture, as an alternative you can use the Azure SQL Edge Docker image. The following image is based on Azure SQL, not exactly Microsoft SQL Server but should have compatibility with the features you need for development.

1.)  Pull the Docker image:

docker pull mcr.microsoft.com/azure-sql-edge

2.)  Run the image, replace the default password (ReplaceMe!) with your own:

docker run -e 'ACCEPT_EULA=1' -e 'MSSQL_SA_PASSWORD=ReplaceMe!' -e 'MSSQL_PID=Developer' -p 1433:1433 --name azuresqledge -d mcr.microsoft.com/azure-sql-edge

At this point you should have the SQL Server up and running on port 1433.  Go ahead and connect and continue developing on your new M1 Mac!

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References

https://hub.docker.com/_/microsoft-azure-sql-edge