Microsoft Reduces Storage Quota for Microsoft 365 Subscriptions

Microsoft has announced a significant reduction in the cloud storage allocated to its Microsoft 365 Family and Premium subscriptions. Starting May 2, 2027, the total shared OneDrive storage for these plans, which previously offered 1 TB per user for up to six users, will be consolidated to a combined 2 TB for the entire group.

The pricing for these subscription tiers will remain the same despite the decrease in storage capacity. Microsoft stated that users who have already purchased additional storage will retain it. The change will apply to subscription renewals on or after the specified date.

While the storage quota is now shared, individual user data remains separate unless explicitly shared. Customers whose usage exceeds the new 2 TB limit after the change takes effect will need to either purchase more storage or delete files. Microsoft offers the option to expand storage up to a total of 10 TB for an additional fee.

For new and updated subscriptions, these changes have already been implemented starting October 8, 2026. For instance, upgrading from a Family to a Premium plan will immediately result in the 2 TB shared storage limit. Microsoft will notify affected customers before their next renewal if their storage usage exceeds the new quota. A grace period of up to one year will be provided for retaining files if the limit is exceeded.