What and why
Microsoft Purview Data Lifecycle Management now allows admins to archive OneDrive and SharePoint files based on retention policies. This helps organizations reduce storage costs by moving inactive content to Microsoft 365 Archive while maintaining compliance and discoverability. Archived content is excluded from Copilot indexing, which can improve the relevance of Copilot responses by focusing results on current, active data.
Rollout schedule
General Availability (GCC, GCC High, DoD): Beginning in mid-September 2026 and expected to complete by late September 2026
Impact on your organization
Who is affected
- Admins managing Microsoft Purview Data Lifecycle Management
- Organizations using retention policies in SharePoint Online and OneDrive
Platforms and services
- Microsoft Purview (Data Lifecycle Management)
- SharePoint Online
- OneDrive
- Microsoft 365 Archive
- Microsoft Copilot
What will happen
- A new Archive option will be available within retention policy settings in Data Lifecycle Management.
- Admins can configure retention policies to move inactive files to Microsoft 365 Archive storage.
- Archived files remain available for compliance scenarios, including eDiscovery.
- Archived content will be excluded from Copilot indexing, helping improve answer relevance.
- This feature is not enabled by default and requires admin configuration.
- Existing retention policies and compliance configurations remain unchanged unless updated by admins.
Action required and recommendations
No immediate action is required. To prepare for and take advantage of this feature, we recommend that you:
- Review your current retention policies in Microsoft Purview Data Lifecycle Management.
- Evaluate opportunities to reduce storage costs by archiving inactive content.
- Update retention policies to include the new Archive option where appropriate.
- Inform compliance and records management stakeholders about this new capability.
- Review internal documentation and processes related to data lifecycle and storage optimization.
Learn more: Configure Microsoft 365 retention settings to automatically retain or delete content | Microsoft Learn
Compliance considerations
| Question | Answer |
| Does the change store new customer data, and if so where, is it cached or permanently stored? | Files moved by retention policies are relocated to Microsoft 365 Archive storage, a distinct storage tier, and are stored there until restored or otherwise actioned. |
| Does the change alter how existing customer data is processed, stored, or accessed? | Archived files move out of active storage into Microsoft 365 Archive, changing how those files are stored and accessed going forward. |
| Does the change introduce or significantly modify AI/ML or agent capabilities that interact with or provide access to customer data? | Archived content is excluded from Copilot indexing, which changes what data Copilot can access and surface in responses. |
| Does the change modify, interrupt, or disable Purview capabilities such as retention policies, holds, or eDiscovery? | Retention policies gain a new archive action, and archived files remain subject to eDiscovery, extending existing retention and discovery workflows. |