Industry News & Trends

Microsoft 365 Family storage cut to one shared 2TB pool from 1TB per person

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Microsoft 365 Family and Premium now share one 2TB OneDrive pool instead of 1TB per member; new plans changed on October 8, 2026, existing ones from 2027.

What Happened

Microsoft has changed the cloud storage that comes with its Microsoft 365 Family and Premium subscriptions, replacing 1 terabyte (TB) of OneDrive storage for each member with a single 2TB pool shared by everyone on the plan. Family plans can be shared by up to six people, so a fully used plan drops from a possible 6TB to 2TB. The new limit applied to new and upgraded subscriptions from October 8, 2026. Existing subscribers will move to the shared pool at their first renewal on or after May 2, 2027, according to Microsoft's published terms; some regional documents give a slightly earlier date. The price of the plans is reported to be unchanged. Microsoft presents the change as more flexible, because one member can now use space that others are not using.

Key Facts

  • Microsoft 365 Family and Premium move from 1TB of OneDrive storage per member to one 2TB pool shared by all members.
  • A Family plan covers up to six people, so maximum total storage falls from 6TB to 2TB.
  • The new limit applied to new and upgraded subscriptions from October 8, 2026.
  • Existing subscribers switch at their first renewal on or after May 2, 2027; a Japanese document listed April 1, 2027, so the exact date may vary by region.
  • Microsoft 365 Single and Basic plans are not affected, and Microsoft 365 Pro gets a 5TB shared pool.
  • Microsoft has said some affected subscribers may receive bonus storage but has not said who qualifies.

Why It Matters

Family cloud plans are where many households keep years of photos, videos, school work and documents. Under the old system, each member had a fixed 1TB, and space one person did not use was wasted. Microsoft's point is that a shared pool lets a heavy user, such as someone who stores lots of video, use more than 1TB if others need little. For small families or light users, the change may make no practical difference.

The households that lose out are those whose members together store more than 2TB. They could be within their individual 1TB limits today and still be over the new shared limit after renewal. Such families will need to delete files, move data elsewhere or pay for extra storage. Because the change for existing users applies only from 2027, they have time to check how much space their family actually uses.

The change is an example of a subscription service changing what a plan includes while, according to reports, keeping the price the same. Some observers have linked the move to rising costs of storage and the demand for data centre capacity driven by AI, but Microsoft has not given that as a reason. Whatever the cause, it is a reminder to read renewal terms carefully.

PlanBeforeAfter
Microsoft 365 Family (up to 6 people)1TB per person, up to 6TB2TB shared
Microsoft 365 Premium1TB per person2TB shared
Microsoft 365 ProNot stated in reports5TB shared
Microsoft 365 Single and BasicUnchangedUnchanged

Impact

Short-term: New subscribers already get the 2TB shared pool; existing users have until their 2027 renewal to check their usage.

Long-term: Families storing large amounts of photos and video may need to trim data, buy more storage or look at other services before renewal.

Who is affected: Households on Microsoft 365 Family and Premium plans, especially those with several heavy OneDrive users, and IT teams that manage family devices.

Key Takeaway

Microsoft 365 Family now shares one 2TB OneDrive pool among up to six people instead of 1TB each, and existing users switch at renewal from May 2027.

Questions and Answers

How much OneDrive storage does Microsoft 365 Family now include?

A single 2TB pool shared by all members, up to six people, instead of 1TB for each member.

When does the change apply to me?

New and upgraded subscriptions got the change from October 8, 2026; existing subscribers switch at their first renewal on or after May 2, 2027, according to Microsoft's terms.

Is the price changing?

Reports say the price of the plans is unchanged.

What should a family using more than 2TB do?

Check total usage before renewal, then delete or move files, or buy extra storage, as Microsoft has not said which users will get bonus storage.

Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.

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Sourced and fact-checked by the Peepals Global Editorial Team

Reported, fact-checked and published by the Peepals Global Editorial Team.

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