SharePoint Document Issues

Understanding SharePoint Storage Limits for Microsoft 365 E3

Maira Mehtab Sep 22, 2026 869 views

Question details

The user wants to understand how SharePoint storage is allocated in a Microsoft 365 E3 subscription, specifically whether creating multiple Teams multiplies the total storage allowance.

Product: Microsoft 365 E3
Device & OS: not provided
Scenario: Managing Microsoft 365 tenant storage and understanding capacity limits when creating new Teams or SharePoint sites.
Observed behavior: Instead of granting independent storage allocations per Team, SharePoint uses a pooled tenant storage model where all sites share the total available capacity.

Before you start

Verify your Microsoft 365 E3 subscription status and ensure you have global administrator access to check current tenant storage usage.

Solution 1Recommended

Understand the Tenant Pooled Storage Model

Learn how SharePoint allocates storage across the entire Microsoft 365 tenant rather than per individual site.

Creating a Team automatically creates a corresponding SharePoint team site. However, SharePoint does not provide a separate, independent storage allocation (e.g., 3,000 GB) for every account or Team created.

For a Microsoft 365 E3 tenant, the total capacity is pooled. Your tenant receives a base storage amount of 1 TB, plus an additional 10 GB per purchased license. Every SharePoint site created draws from this single pooled storage limit.

Review total tenant capacity

Check site quotas

Understand that while a single site theoretically can hold up to 25 TB, it can never exceed the total pooled capacity available in your specific tenant.

Storage Allocation: Creating 10 new Teams does not give you 10 times the storage; all 10 sites will simply share your existing total tenant storage pool.

Solution 2

Manage and Increase SharePoint Storage

Steps on what to do if your tenant is running out of pooled storage capacity.

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Frequently Asked Questions

Do I get more storage every time I create a new Team in Microsoft 365?

No. Creating a new Team creates a SharePoint site that consumes space from your overall tenant's pooled storage. It does not add new storage to your total capacity.

What is the maximum storage a single SharePoint site can use?

Theoretically, a single SharePoint site can reach up to 25 TB, provided your tenant's total pooled storage capacity is large enough to support it without exceeding limits.

How is my total Microsoft 365 E3 SharePoint storage calculated?

For an E3 subscription, your total SharePoint storage is typically calculated as a base of 1 TB plus an additional 10 GB for every purchased E3 license in your tenant.

Document & File Issues