OneDrive Plan Retirement !

Question

I would like to seek clarification regarding OneDrive licensing changes.

Microsoft has announced that the standalone OneDrive Plan is being retired, and customers are advised to transition to Microsoft 365 E3 or E5 licenses.

Currently, our organization is using OneDrive Plan 2, and each user is provisioned with 25 TB of OneDrive storage.

If our organization subscribes to Microsoft 365 E3 or E5, will the existing 25 TB OneDrive storage per user be retained under the new license, or will there be any changes to the storage allocation?

Article Link: https://learn.microsoft.com/en-us/partner-center/announcements/2026-january#retirement-of-standalone-sharepoint-online-and-onedrive-for-business-plans-plan-1-and-plan-2

Answer 1

Dear @JasonL, 

Thank you for posting your question in the Microsoft Q&A forum. 

Yes, but there is a slight administrative caveat. Although Microsoft 365 E3 and E5 support up to 25 TB (and beyond), the storage capacity does not always automatically roll over to the maximum level by default. 

New M365 E3/E5 licenses typically start with a default quota of 1 TB per user. 

Default: 1 TB per user. 

Level 1 Expansion: Can be increased to 5 TB by an administrator if the organization has 5 or more qualifying licenses. 

Level 2 Expansion: Can be increased to 25 TB via a Microsoft Support request, but only after a user has filled 90% of their 5 TB capacity. 

References:  

OneDrive service description - Service Descriptions | Microsoft Learn 

Check OneDrive site eligibility for increased storage - SharePoint | Microsoft Learn 

Furthermore, if 90% of that 25 TB is utilized, you can ask an administrator to submit a support ticket to Microsoft's backend. They will then provide additional storage in the form of personal sites (SharePoint Team Sites), up to a maximum of 50 TB. 

If you face any difficulties or find anything unclear, please reply to me so I have the opportunity to support you better.  

---

If the answer is helpful, please click "Accept Answer" and kindly upvote it. If you have extra questions about this answer, please click "Comment". 

Note: Please follow the steps in our documentation to enable e-mail notifications if you want to receive the related email notification for this thread. 

Answer 2

When transitioning from OneDrive Plan 2 to Microsoft 365 E3 or E5, the storage allocation will change. Under Microsoft 365 E3 and E5 plans, the default OneDrive storage limit is 1 TB per user, which can be increased to 5 TB if the organization has 5 or more qualifying licenses. Additionally, if a user fills 90% of their 5 TB capacity, it can be further increased to 25 TB via a Microsoft Support request. Therefore, while you may have been using 25 TB per user under OneDrive Plan 2, this will not automatically be retained under the new Microsoft 365 licenses without going through the necessary steps to request the increase.