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Hi @Sue Mellor,
Welcome to the Microsoft Q&A forum and thank you for reaching out with your question about managing storage usage for frequently edited files in SharePoint.
Based on the details you shared, your interpretation of how versioning contributes to storage use appears to be consistent with SharePoint’s behavior. Frequent edits to large files can lead to multiple stored versions in SharePoint, which may add up and impact total storage usage over time. To expand on this further, you may refer to the information and links provided in the Q&A Assist response, as they offer useful context about how version history is handled in SharePoint and how versioning settings can influence storage usage over time.
Additionally, if you would like to manage this at the organization level, you can follow the steps in the following article to configure how many versions are preserved or for how long they are retained for new document libraries.: Set default organization version limits - SharePoint in Microsoft 365 | Microsoft Learn.
(Please note that this action must be performed by a Global Admin or SharePoint Admin.)
I hope this information is useful. Thank you for taking the time to raise this question. If you need any further clarification or assistance, please feel free to leave a comment under this post.
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