Microsoft 365's 'Family' and 'Premium' plans have reduced OneDrive storage capacity from '1TB per person x up to 6 people' to '2TB total for all users.'
Previously, Microsoft 365 Family and Premium subscribers could share their subscription with up to five other users, each receiving 1TB of OneDrive cloud storage for a total of 6TB. However, on October 8, 2026, Microsoft updated its support documentation, changing the system so that Microsoft 365 Family and Premium users now share a 2TB storage pool collectively.
Changes to Microsoft 365 storage | Microsoft Support
Microsoft cuts M365 Family and Premium OneDrive cloud storage from 6TB to just 2TB - Neowin
https://www.neowin.net/news/microsoft-cuts-m365-family-and-premium-onedrive-cloud-storage-from-6tb-to-just-2tb/
Microsoft states that 'the new shared storage model offers greater flexibility.' Previously, a family of six could share a total of 6TB of storage, but once an individual reached their 1TB limit, they could not use the unused portion even if other family members were not using any storage. In contrast, the revised shared storage model reduces the total storage to one-third, or '2TB,' and allows one person to use the entire allocated 2TB if other members are not using it.
However, if, under the previous model, six users were each using the majority of 1TB of storage, and the total exceeded the 2TB limit of the new shared storage model, they may be forced to purchase additional storage to maintain their data. For existing Microsoft 365 Family and Premium subscription users, the new storage limits will apply after their first subscription renewal on or after May 2, 2027.
Existing Microsoft 365 Family and Premium subscription users who meet the eligibility requirements in a supported region may receive free bonus storage when renewing their subscription after shared storage becomes available. This will temporarily increase storage capacity, which can be helpful for data migration, but the amount of bonus storage and the eligibility requirements have not been disclosed as of the time of writing.
Microsoft has repeatedly stated that the reason for changing its shared storage model is 'to increase sharing flexibility,' but technology media outlet Neowin suggests that rising data center infrastructure costs may have influenced the decision, stating that 'this change comes at a time when the AI boom has significantly increased storage demand, putting pressure on the supply and price of HDDs.'
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