This error occurs when opening a newer Data Model in an older version of the Power Pivot add-in. For example, the Data Model was created in Excel 2013 and then opened in Excel 2010.
To work around this error, upgrade to Excel 2013, Office Professional Plus edition. Data Models created in Excel 2013 will run only in workbooks that are also opened in Excel 2013.
More about this error
The error doesn't occur immediately when you open the workbook. Instead, you see it when you interact with a PivotTable or report that uses the workbook Data Model as a data source. Data interactions, such as clicking a slicer or changing a report filter, generate a query that is sent to the Data Model. Because the Data Model is no longer valid in Excel 2010, you get a data source initialization error instead of data interaction.
Suppose you now try to open the Data Model in a Power Pivot window. The model will not open, and the following error occurs:
"This workbook contains an Excel data model that is created in a newer version of Excel. You can open this workbook in an older version of Excel, but you will be unable to load or work with Power Pivot when it coexists with a Excel data model."