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Thu, 12 Nov, 2026Updated 10:35 am IST
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Microsoft 365 Family Plan Storage Slashed to 2TB

The cloud storage space for Microsoft 365 Family plan has been reduced from up to 6TB to a shared 2TB, affecting existing and new subscribers, with the change taking effect on or after May 2, 2027, for existing users

Microsoft 365 Family Plan Storage Slashed to 2TB
Photo: Dan Nelson / Pexels

Microsoft has announced a significant change to its 365 Family plan, reducing the cloud storage space from up to 6TB to a shared 2TB. This change applies to both new and existing subscribers, with existing users being transitioned to the new shared storage on or after May 2, 2027.

The Microsoft 365 Family plan previously allocated 1TB of storage per member, up to a total of 6TB. However, with the new change, the 2TB storage space will be shared among all members of the plan. This change also applies to Microsoft 365 Premium subscriptions, which come with additional advanced AI features.

Existing Family plan subscribers who signed up before October 8 will be notified by Microsoft before the storage change is applied. The company will provide more details about the storage changes before they take effect. New subscribers, on the other hand, will be subject to the new 2TB shared storage limit immediately.

The Microsoft 365 Family plan costs $13 a month or $130 a year and allows up to six members to be part of the plan. Subscribers can add up to 10TB of storage to their plan in packs of 100GB or 500GB, providing some flexibility for users who require more storage space.

## What it means for users The reduction in storage space may leave some users frustrated, especially those who rely heavily on the cloud-based service for their files and documents. With the shared storage space, users will now have to be more mindful of their storage usage, as the 2TB limit will be shared among all members of the plan.

## Why it matters The Microsoft 365 Family plan is a cloud-based subscription service that provides access to a suite of apps, including Word, Excel, PowerPoint, OneNote, and OneDrive. The storage allowance is crucial for users who create and store files through these apps. The reduction in storage space may affect the way users utilize the service, and the additional cost of adding more storage may be a concern for some.

The change in storage space is likely to impact users who have large files or multiple users on the same plan. However, Microsoft's notification system will ensure that users are informed about the changes before they take effect, giving them time to adjust their storage usage or add more storage to their plan if needed.

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