Microsoft to reduce OneDrive storage for Microsoft 365 subscriptions

Microsoft is implementing significant changes to its OneDrive storage policy for Microsoft 365 Family and Premium subscriptions. Under the new model, storage will no longer be allocated individually to each user. Instead, a shared storage pool will be introduced, allowing members of a single subscription to use the available space more flexibly according to their needs. While files remain private unless explicitly shared, the total capacity for Family and Premium plans will be reduced to 2 TB for the entire group.

Previously, Microsoft provided 1 TB of OneDrive storage per person, which could reach a total of 6 TB for a family plan with six users. This change represents a reduction to approximately one-third of the previous maximum capacity. The new limits have applied to new subscribers since October 8, 2026. For existing customers, the reduced quota will take effect during their first subscription renewal on or after May 2, 2027. Microsoft 365 business subscriptions are currently unaffected by these changes.