How to Restrict SharePoint Site Creation from Microsoft 365 Groups
Question details
Administrators need to prevent standard users from automatically creating SharePoint sites when setting up Microsoft 365 groups.
- Product
- Microsoft 365 / SharePoint
- Device & OS
- not provided
- Scenario
- Managing user permissions and centralizing control over SharePoint and Teams site creation.
- Observed behavior
- Standard users creating a Microsoft 365 group through Outlook, Planner, Teams, or OneDrive automatically generate a connected SharePoint site.
Ensure you have Global Administrator or SharePoint Administrator privileges in your Microsoft 365 tenant to modify group and site creation settings.
Restrict Microsoft 365 Group Creation to Specific Users
Since SharePoint site creation is permanently tied to Microsoft 365 group creation, limiting who can create groups is the most effective way to restrict automated site generation.
You cannot disable SharePoint site creation independently from Microsoft 365 group creation. Modifying the group creation policy will also restrict group creation in Outlook, Teams, Yammer, Planner, Power BI, and Project.
Log in to the Microsoft 365 admin center, go to 'Teams & groups' > 'Active teams and groups', and create a new security group containing the approved administrators or users allowed to create groups.
Open PowerShell as an Administrator on your PC and run the command 'Install-Module AzureADPreview' to install the necessary tools for managing Entra ID (Azure AD) settings.
Use Microsoft's official PowerShell script to disable Microsoft 365 Group creation for the entire tenant, and specify your newly created security group's ObjectID as the only exception.
Hide the 'Create site' Button in SharePoint Admin Center
This prevents users from creating sites directly from the SharePoint start page, though it will not block creation through other group-enabled apps like Teams.
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Frequently Asked Questions
Can I disable SharePoint site creation but still allow users to create Teams?
No, because every Microsoft Team is backed by a Microsoft 365 group, which automatically provisions a connected SharePoint site for file storage. The two processes cannot be separated.
Will restricting group creation affect my existing Microsoft 365 groups and SharePoint sites?
No, existing groups and their connected SharePoint sites will remain entirely intact and fully functional. The restriction only prevents standard users from creating new groups moving forward.
Who can still create Microsoft 365 groups after the Azure AD restriction is applied?
Microsoft 365 Global administrators, Exchange administrators, SharePoint administrators, and members of the specific security group you exempted will still be able to create groups and connected sites.
