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Fix Enable-OrganizationCustomization Organization Is Being Upgraded Error in Exchange Online

WPS Content ManagerWPS Content Manager Oct 10, 2026 868 views

Question details

Exchange Online administrators are unable to run the Enable-OrganizationCustomization cmdlet to modify settings, receiving a continuous tenant upgrade error.

How to Fix Enable-OrganizationCustomization Fails Because Organization Is Being Upgraded
Product
Exchange Online
Device & OS
not provided
Scenario
Attempting to enable organization customizations via PowerShell to modify settings like external forwarding in outbound anti-spam policies.
Observed behavior
The command fails repeatedly with an error stating the organization is currently being upgraded, and this blocked state persists for more than 48 hours.
Before you start

Ensure you have Exchange Administrator credentials and access to the Microsoft 365 admin center before checking the service health dashboard or submitting a support ticket.

Solution 1Recommended

Verify Microsoft Service Health for Incident EX673801

Microsoft identified a service regression that caused this tenant upgrade failure. Check if your tenant has received the progressive fix.

This specific failure was tracked by Microsoft under incident ID EX673801. A backend service update introduced a regression that prevented the tenant hydration process from completing successfully.

Microsoft has already deployed a progressive fix across affected environments. Administrators should first verify the deployment status for their specific tenant.

1
Access the Microsoft 365 Admin Center

Sign in to the Microsoft 365 admin center using your global or Exchange administrator credentials.

2
Navigate to Service Health

Go to Health > Service health in the left-hand navigation menu.

3
Check for Incident EX673801

Review the 'Issue history' or active issues for Exchange Online incident EX673801 to confirm if the fix has been fully applied to your environment.

4
Retry the Cmdlet

Once the service health dashboard indicates the issue is resolved for your tenant, connect to Exchange Online PowerShell and run the Enable-OrganizationCustomization cmdlet again.

Verify Microsoft Service Health for Incident EX673801
Tenant Hydration Time: Even after the fix is applied, the actual tenant hydration process triggered by the cmdlet may take up to 60 minutes to complete in the background.
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Frequently Asked Questions

What does Enable-OrganizationCustomization do?

By default, Exchange Online tenants are created in a dehydrated state to save space. The Enable-OrganizationCustomization cmdlet hydrates the tenant, allowing administrators to modify customized settings, transport rules, and security policies.

How long does the organization upgrade process normally take?

Under normal circumstances, the process triggered by Enable-OrganizationCustomization takes a few minutes to an hour. If it exceeds 48 hours, it indicates an error or a backend server issue that requires troubleshooting.

Why do I need to run this command to allow external email forwarding?

Modifying default outbound anti-spam policies to allow external forwarding requires your tenant to be fully hydrated. Running this command unlocks the ability to customize these specific Exchange Online security policies.