Microsoft is cutting the OneDrive cloud storage included with Microsoft 365 Family and Premium plans. Instead of 1TB per person, everyone on the plan shares a single 2TB pool. For a Family plan with six members, that drops the total from 6TB to 2TB.

What changes

  • Microsoft 365 Family and Premium move from 1TB per person to 2TB shared across the entire plan.
  • A six-person Family plan goes from 6TB total to 2TB total.
  • Microsoft 365 Pro is not part of the 2TB cut: Microsoft's support page lists Pro at 5TB shared.

When it takes effect

For existing subscribers, the change applies at the first subscription renewal on or after May 2, 2027, unless you make an eligible plan upgrade earlier (a downgrade alone does not trigger it). New and upgraded subscriptions already use the shared model, according to Windows Central and Microsoft's support document. This date is confirmed by The Verge, Tom's Hardware and Windows Central.

What existing subscribers should do

  • Check your current OneDrive usage against the new 2TB shared limit.
  • If your family uses more than 2TB, download or back up files before your renewal date.
  • Windows Central reports that stacking subscription time before the cutoff may delay the change, though Microsoft has not confirmed this.
  • Some existing subscribers in eligible markets might qualify for transitional bonus storage, according to a support note seen by The Verge.

Prices stay the same

Tom's Hardware reports that Microsoft has not increased subscription prices. Windows Central notes that Microsoft 365 Family lists at $129.99 a year, the price since January 2025.

Why Microsoft is making the change

Microsoft says shared storage lets unused space benefit the entire family and reduces the chance of one person hitting their limit. Tom's Hardware speculates the move reflects an industry-wide storage shortage; Microsoft has not said so. The outlet points to hard drive prices rising 46 percent from September 2025 to January 2026.

AI features come alongside the cut

The Verge reports that Microsoft will also let Family and Premium subscribers share Copilot and AI usage features with up to five other people on their plan, with changes arriving over the coming months. The storage cut is announced alongside these AI-sharing benefits.

Why it matters

A family that currently uses close to 6TB of OneDrive storage must either reduce their cloud usage or buy additional storage. Extra capacity starts at $1.99 per month for 200GB, according to Tom's Hardware. The price you pay stays the same, but the storage you get drops by two-thirds for a full Family plan.