As a small business, how do I maximize my storage space

Jimmy Duke 20 Reputation points
2026-07-16T12:40:56.5233333+00:00

My SharePoint storage continues to run out of storage space, why does Microsoft limit the amount of storage we can get down to the GB when I need additional TB or more

Microsoft 365 and Office | SharePoint | For business | Other
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Jayden-P 26,280 Reputation points Microsoft External Staff Moderator
2026-07-16T13:10:03.04+00:00

Hi @Jimmy Duke

SharePoint Online storage is not provided as unlimited capacity. Instead, Microsoft allocates storage based on your tenant's licensing entitlement, with most Microsoft 365 Business and Enterprise subscriptions receiving a base amount of storage plus additional capacity for each qualifying licensed user.

Before purchasing more storage, it may also be worthwhile to review areas that commonly consume large amounts of SharePoint capacity, such as document version history, Recycle Bin contents, Teams meeting recordings stored in OneDrive or SharePoint, and inactive sites that are no longer actively used. Cleaning up or archiving this content can sometimes recover a significant amount of storage.

If your organization requires additional SharePoint storage, there are currently two options:

1.Microsoft 365 Extra File Storage This is the traditional add-on and is purchased in 1 GB units. While it is displayed as 1 GB, you can purchase thousands of units. For example, 1,000 units provides approximately 1 TB of additional storage, and 5,000 units provides approximately 5 TB. The purchased storage is added to your tenant's pooled SharePoint storage allocation.

Ref: Buy the Office 365 Extra File Storage add-on

2.Microsoft 365 SharePoint Storage Microsoft has also introduced a newer pay-as-you-go option for commercial tenants. Instead of purchasing storage in fixed increments, you can consume storage above your tenant's quota and pay based on actual usage. This option is designed for organizations that need flexible growth beyond their included SharePoint storage allocation. It is currently unavailable for Education, GCC, and Microsoft 365 operated by 21Vianet customers.

Ref: Add Microsoft 365 SharePoint Storage

If you expect storage growth of several TB over time, the new pay-as-you-go SharePoint Storage offering may be worth considering. Otherwise, additional capacity can still be added using the traditional Extra File Storage add-on sold in 1 GB units.

I hope this information helps.

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