Microsoft 365 changes OneDrive storage to a shared 2 TB pool

Microsoft is implementing a major change to its Microsoft 365 Family and Premium subscription plans, transitioning from individual storage allocations to a shared storage pool. Previously, up to six users could each receive 1 TB of OneDrive storage, totaling 6 TB for a full family. Under the new model, these plans will share a single 2 TB pool. This change represents a reduction of up to 66.7% in total available capacity for large households.

To offset the storage reduction, Microsoft is expanding AI benefits by allowing primary subscribers to share Copilot AI features and usage credits with up to five other family members. This move shifts the focus of the subscription from high-capacity cloud storage toward integrated AI services.

The new policy is already in effect for new subscriptions and plan upgrades as of October 8, 2026. Existing subscribers will not be immediately affected; the change will apply to them upon their first renewal on or after May 2, 2027. Microsoft has noted that files will remain private to each individual account, even though the storage capacity is shared. The Microsoft 365 Pro plan will also move to a shared model, providing a 5 TB pool.