Microsoft 365 Family and Premium OneDrive Storage Drops From 6TB to 2TB

Microsoft is cutting the maximum OneDrive storage available to Microsoft 365 Family and Premium subscribers from 6TB to 2TB, replacing individual storage allocations with a shared pool.

According to Microsoft’s OneDrive storage support document, the company will replace the current model, which gives up to six users 1TB each, with a single 2TB pool that everyone shares.

The change represents a 66.7% reduction in total available storage. However, Microsoft says the new approach offers greater flexibility, as individual family members can use more than 1TB as long as enough shared storage remains.

Microsoft 365 Pro, which costs $99 per month, will offer a larger 5TB shared storage pool.

New storage limits take effect in October 2026

The new shared storage model took effect on October 8, 2026, for all new and upgraded Microsoft 365 subscriptions.

Existing Family and Premium subscribers will move to the new model after their first subscription renewal on or after May 2, 2027.

Until then, existing subscribers can continue using their current individual storage allocations.

Families using more than 2TB could face problems

The biggest impact will fall on households that currently use more than 2TB of combined OneDrive storage.

These subscribers could exceed their new storage limit and may need to delete files, move data elsewhere, or purchase additional storage.

On the other hand, families where one person needs more than 1TB could benefit from the shared model, provided their total usage stays within the 2TB limit.

The changes also come amid growing demand for data center storage driven by AI workloads, although Microsoft has not directly linked the reduction to AI infrastructure requirements.

In other news, Microsoft recently delayed a OneDrive long path fix until late October and confirmed that Microsoft 365 Targeted Release is going away in 2027. The company is also preparing to retire legacy WAM sign-in in Microsoft Edge 157.