License & Subscription Issues

Understanding OneDrive Plan 2 Storage Limits and License Requirements

Bushra ParveenBushra Parveen Oct 26, 2026 868 views

Question details

Determine the licensing threshold required to expand OneDrive Plan 2 cloud storage from the default 1 TB to 5 TB per user.

OneDrive Plan 2 Storage Limits and License Requirements
Product
OneDrive
Device & OS
not provided
Scenario
Planning to expand cloud storage capacity for a business organization by upgrading user licenses.
Observed behavior
The default storage capacity is limited to 1 TB per user. The system requires specific licensing conditions to unlock the 5 TB expanded storage.
Before you start

Verify your current Microsoft 365 or OneDrive for Business subscription type and check the current number of active user licenses in your organization's admin center.

Solution 1Recommended

Unlocking 5 TB Storage on OneDrive Plan 2

To increase your storage capacity from 1 TB to 5 TB per user, your organization must meet the minimum requirement of five licensed users on a qualifying plan.

Microsoft sets a specific licensing threshold for its business cloud storage plans. While an individual user receives 1 TB by default, organizations must pool together a minimum number of licenses to unlock enterprise-level capacities.

1
Access the Admin Center

Log in to the Microsoft 365 admin center using your global or billing administrator credentials.

2
Check Active Licenses

Navigate to the 'Billing' section and select 'Licenses' to view your current active user count for OneDrive for Business Plan 2 or qualifying Microsoft 365 plans.

3
Meet the License Threshold

Ensure your organization has at least five active user licenses assigned. If you have fewer than five, you will need to purchase and assign additional licenses to reach the threshold.

4
Configure the New Limit

Once the five-license requirement is met, go to the SharePoint admin center, select 'Settings', click on 'OneDrive storage limit', and configure the default storage limit to 5 TB (5120 GB).

Unlocking 5 TB Storage on OneDrive Plan 2
Storage Allocation for Smaller Teams: If your organization has fewer than five licensed users, each user will only receive 1 TB of storage by default, regardless of the plan tier purchased.
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Frequently Asked Questions

What happens to my storage limit if my organization drops below five licensed users?

If the number of active licensed users falls below the minimum threshold of five, your organization's maximum default storage per user will revert from 5 TB back to the standard 1 TB limit.

Can I get unlimited OneDrive storage if I have more than five users?

Organizations with five or more users on qualifying plans initially get 5 TB per user. If you reach this limit, administrators can contact Microsoft support to request additional storage capacity, potentially increasing it up to 25 TB per user.

Why does my account still show 1 TB after adding five licenses?

After adding the necessary licenses, the storage increase is not always automatic. An administrator may need to manually update the default storage limit in the SharePoint admin center under Settings > OneDrive storage limit, or update individual user limits via PowerShell.