Who is impacted
- Microsoft 365 tenants with unpaid extended SharePoint storage
- Organizations that benefited from historical storage boosts or exceptions
- If you are concerned ( if your tenant has an allotment of unpaid storage ), you can see this message : https://portal.office.com/adminportal/home/?ref=MessageCenter/:/messages/MC1234568
What’s changing Unpaid extended SharePoint storage will be removed starting January 1, 2027.
If your tenant previously received free or promotional storage extensions, this capacity will no longer be available unless action is taken. This refer to the SharePoint Online out of storage space.
Key dates to remember
- Now – December 2026: Grace period to review storage usage and take corrective action
- June 2026: New flexible storage purchasing options become available
- January 1, 2027: Removal of unpaid extended SharePoint storage begins
What will happen (if you don’t meet the new storage policy and terms)
- Environment may enter a read only or restricted mode
- Uploads and new file creation will be blocked
- Teams collaboration reliant on file storage may stop functioning properly
- Sync issues may occur
- Workflows or processes that depend on writing data to SharePoint may fail
What will not-happen
- No service downtime
- No data lost
- No automatic deletion of files
Remember, a standard Microsoft 365 storage includes
- 1 TB base tenant storage
- +10 GB per licensed user
- + any purchased add‑on storage (New flexible storage will be available)
What you should do now
- Review your storage usage
- Go to the Microsoft 365 admin center.
- Navigate to SharePoint admin center > Active sites.
- Review Total storage and Available storage.
- Identify extended storage
- Run the Tenant Storage Diagnostic Tool to uncover quota issues
- Choose the right path forward
- Delete data
- Archive data
- Alternative storage (Opus & Azure File Storage)
- Purchase extra storage
- Office 365 Extra File Storage (available now)
- OneDrive Extra Storage capacity packs (available from June 2026)
Contact us today to review your SharePoint storage and avoid unexpected capacity issues in 2027.
Sales: sales@itcloud.ca
Technical support: support-ms@itcloud.ca