Using classic Outlook for Windows in business environments
From what I research, Outlook Classic does not store emails or attachments using Base64 encoding. Messages are stored using the native MAPI format, and attachments are saved as raw binary data. There is no automatic compression or optimization applied based on file type. As a result, a 2 MB attachment (PDF, JPG, PNG, DOCX, XLSX, TXT, CSV, or ICS) occupies approximately 2 MB in the mailbox.
Base64 encoding is used only when an email is sent via SMTP, typically to external recipients. During the sending process it increases the attachment size by approximately 33%, so a 2 MB file becomes roughly 2.6–2.7 MB while in transit. Message size limits are enforced on this encoded size, not the stored mailbox size. This behavior is consistent across all attachment types.
Read here for more details: Exchange Online limits - Service Descriptions | Microsoft Learn
However, if a file is attached as a OneDrive link, the file itself is not attached in the message and is not Base64‑encoded, which avoids attachment size inflation.
I hope this information helps.
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