Introduction
To help organizations manage SharePoint storage more flexibly and avoid over-provisioning, Microsoft is introducing a pay-as-you-go, consumption-based billing model for SharePoint storage overages. This option allows you to pay only for the additional storage you actually use, rather than pre-purchasing extra capacity. The experience integrates with Microsoft 365 Archive and helps align storage costs with real usage.
This change is associated with Microsoft 365 Roadmap ID 506743.
When this will happen:
- Public Preview (Worldwide): We will begin rolling out in early June 2026 and expect to complete by mid-June 2026.
- We will update this message with General Availability (GA) details as they become available.
How this affects your organization:
Who is affected:
- Microsoft 365 administrators managing SharePoint Online storage
- Note: This feature isn’t currently available to education tenants. Let us know if you’d like it to be supported in the future.
What will happen:
- Admins can enable pay-as-you-go SharePoint storage billing in the Microsoft 365 admin center.
- Storage used above the included tenant quota will be automatically billed based on consumption.
- There is no impact to users.
- The existing Office 365 Extra File Storage add‑on remains available if you prefer to manually increase your storage quota instead.
- The feature is opt-in and off by default.
What you can do to prepare:
- No immediate action is required. However, we recommend the following:
- Review your tenant’s current SharePoint storage usage in the SharePoint admin center > Active sites.
- Evaluate whether a consumption‑based model or manually purchased storage best fits your organization’s cost and governance preferences.
- If you plan to enable pay‑as‑you‑go billing:
- Ensure the appropriate Azure subscription and billing permissions are in place.
- Update internal documentation or cost‑management processes as needed.
- Share this information with finance or procurement teams if they track usage‑based charges.
Learn more: Add more SharePoint storage to your subscription | Microsoft Learn
Compliance considerations
| Compliance area |
Impact and explanation |
| Admin monitoring and reporting |
SharePoint storage usage above the included tenant quota will be reflected in consumption-based billing and usage reports, which may affect how admins monitor and track storage consumption and costs. |
| Admin control |
Administrators must explicitly enable |