Microsoft 365 Subscription Changes Cut Shared OneDrive Storage to 2TB

Microsoft framed the changes as giving subscribers “more flexibility with their AI and cloud storage benefits,” ZDNet reported. The changes are slated to roll out “in the coming months” and affect shared AI usage and cloud storage benefits. Under the new structure, each family member’s accounts and files remain private, but their storage usage will be subtracted from a single shared pool.

For Family and Premium subscribers, the reduction is substantial. ZDNet reported that the current 1 TB per member allowance, with five shared slots plus the owner, can give a family 6 TB in total. After the changes, Family and Premium plans get 2 TB of shared storage. Microsoft 365 Pro, a new plan quietly launched in September, gets 5 TB of shared storage and the highest available AI usage limits, but it costs $100 a month, according to ZDNet.

The storage cut could translate into higher bills. ZDNet reported that the base Microsoft 365 Family plan costs $130 a year, or a little more than $10 a month, and each additional 1 TB of OneDrive storage adds $10 a month. For Family and Premium subscribers using more than 2 TB across all accounts who are not willing or able to cut usage, the change could double or triple their current rates, ZDNet reported.

AI benefits will also change. Currently, Copilot usage credits are available only to the subscription owner and cannot be shared with family members. After the changes, family members will be able to share AI usage credits, and the subscription owner will be able to manage AI access for younger family members. The plans will switch to a single AI usage allowance that all family members can share. Premium and Pro subscribers will have the option to buy additional AI usage credits, according to ZDNet.

A Microsoft spokesperson told ZDNet that new and upgraded subscriptions include shared storage starting Oct. 8, 2026. Customers with an existing subscription will move to shared storage at their first renewal on or after May 2, 2027, and will be notified in advance.

ZDNet said the most likely reason for the change is to limit enthusiasts who use the 6 TB of storage included with a Family subscription to build personal data hoards, in some cases by adding a second free Microsoft account to a shared subscription slot and filling its OneDrive storage. The article noted that this is not the first time Microsoft has sharply reduced OneDrive storage for subscribers. In 2014, Microsoft offered “unlimited” OneDrive storage to Office 365 subscribers, then reneged a year later, blaming a small number of users who backed up numerous PCs and stored entire movie collections and DVR recordings, with some exceeding 75 TB per user.

The move also aligns Microsoft’s plans with competitors, ZDNet reported. Google One includes 2 TB of shared storage for six people plus AI credits for $100 a year, while a 5 TB plan costs $200 a year and includes additional AI credits. Apple sells shared storage through iCloud+ plans and Apple One bundles that include Apple TV, Apple Music, and other subscription offerings. ZDNet said the change will be unnoticeable for most Microsoft 365 subscribers.

Editor's Summary

Microsoft will move Microsoft 365 Family, Premium, and Pro subscriptions to shared OneDrive storage and shared AI usage pools. Family and Premium plans will offer 2 TB of shared storage, down from up to 6 TB, which could raise costs for heavy users when renewals begin. The changes take effect for new subscriptions on Oct. 8, 2026, and for existing customers at renewal on or after May 2, 2027.