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License Error SharePoint Online is out of storage space

SharePoint Online is out of storage space: tenant and site quota errors

11 min read Updated October 4, 2026 Microsoft 365 & Entra ID

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Two different things produce this. Either the tenant has consumed its pooled storage, or one site has reached the limit set for it. The consequence is the same and abrupt: Microsoft states that a tenant operating above its storage limits risks being put into read-only mode, so uploads and edits stop.

Run these in the SharePoint Online Management Shell; StorageQuota is in megabytes

Connect-SPOService -Url https://contoso-admin.sharepoint.com
Get-SPOSite -Limit All | Sort-Object StorageUsageCurrent -Descending | Select-Object Url,StorageUsageCurrent,StorageQuota -First 20
Set-SPOSite -Identity https://contoso.sharepoint.com/sites/team -StorageQuota 51200
  1. Read the tenant storage figure on the SharePoint admin center home page first. It settles which of the two conversations you are having.
  2. The listing above finds the sites holding the data. Compare each site’s usage against its own limit before assuming the tenant is the problem.
  3. Empty both stages of the recycle bin on the worst offenders. Microsoft states that the space a site’s recycle bin uses is part of the organisation’s total storage limit.
  4. Trim version history on libraries holding large files. Every retained version is stored in full.
  5. If one site is at its own limit while the tenant has room, raise that limit rather than deleting anything. The maximum is 25 TB, entered as 25600 GB in the admin centre.
  6. If the tenant pool itself is exhausted, raising a site limit achieves nothing. Free space, or add capacity.

If uploads work again and the tenant figure shows headroom, stop here. If you need to know how the pool is calculated before deciding what to buy, that is the next section.

Why it happens

SharePoint storage is pooled at tenant level rather than allocated per site. Microsoft documents the pool as 1 TB base plus 10 GB per licence purchased, so it grows as you add people. There are exceptions worth knowing: Microsoft 365 F1 and F3 and Office 365 F3 provide the 1 TB base only with no per-licence addition, OneDrive standalone plans contribute 0.50 GB per licence, and Visio Plan 2 and Project Plan 3 and 5 contribute approximately 10 GB per licence. The OneDrive created for each licensed user is accounted for separately and is not part of those figures.

Two limits can therefore stop you and they need different fixes. Individual sites draw from the pool automatically by default, in which case the only real ceiling is the tenant total and the documented 25 TB maximum per site. Where an administrator has switched to manual management, each site has its own limit and can hit it while the tenant still has plenty. Read the tenant figure first, because raising a site limit does nothing when the pool behind it is empty.

What actually fills the pool is rarely what people expect. Version history is usually the largest single contributor, because SharePoint stores complete copies rather than differences, so a heavily edited file with a long history can be many times the size of the current document. Recycle bins are second, and Microsoft is explicit that the space they use counts against the organisation’s total. Old project sites nobody has opened in years are third, and they are the easiest to deal with because nobody objects.

Version history has grown unchecked

You have this one if A library holds far more storage than the visible files account for, especially where large documents are edited frequently.

  1. Set a sensible limit on the number of major versions kept, in the library’s versioning settings.
  2. Apply the tenant and site version history limits available in the SharePoint admin center so new libraries inherit a sane default.
  3. Understand that lowering a limit trims existing history when it is applied – that frees space and permanently removes those versions.
  4. Re-check the site’s storage figure afterwards; trimming is not instant across a large library.

Discuss version trimming with whoever owns the content before applying it. Some teams rely on deep history, and it cannot be recovered once trimmed.

Recycle bins are holding deleted content

You have this one if Users have deleted a lot recently and the storage figure has not moved.

  1. Empty the first-stage recycle bin on the site, then the second-stage bin, which only a site collection administrator can see.
  2. Check the recycle bins of the largest sites specifically rather than assuming users cleaned up after themselves.
  3. Confirm nothing in there is still needed before emptying, because emptying the second stage is final.

One site has a manual limit and reached it

You have this one if A single site refuses new content while the tenant storage figure still shows headroom.

  1. Read that site’s StorageQuota and StorageUsageCurrent.
  2. Raise the limit with Set-SPOSite -Identity <url> -StorageQuota <MB>, or in the admin centre under Active sites, the site, General, Storage limit.
  3. Or switch site storage management to automatic, which resets all site limits to 25 TB and lets sites draw from the pool.
  4. Turn on the notification threshold while you are there, so a site owner is warned before this happens again.

Old sites nobody uses are holding the space

You have this one if The largest sites in the listing are projects, departments or leavers nobody has opened in a long time.

  1. Review the sites with the largest usage and the oldest activity date together, not separately.
  2. Move genuinely finished content to your archive of record, then delete the site.
  3. Consider Microsoft 365 Archive for content that must stay in place but is cold.
  4. Remember that deleted sites are retained before final removal, so the space does not return the same afternoon.

The licence count fell and the pool shrank with it

You have this one if Nothing was uploaded, nobody deleted anything, and the available figure dropped after a renewal.

  1. Compare the current licence count against what it was before the renewal.
  2. Remember the arithmetic runs both ways: 10 GB per licence is added when you buy and removed when you do not renew.
  3. Restore the licence count, or plan the clean-up, before treating this as a storage incident.

Full reference

How the pool is put together

Source Contribution to the tenant pool
Base allocation 1 TB
Most Business, Enterprise and Office 365 plans, and SharePoint Plan 1 or 2 10 GB per licence purchased
Microsoft 365 F1 and F3, Office 365 F3 The 1 TB base only, with no per-licence addition
Visio Plan 2, Project Plan 3 and Plan 5 Approximately 10 GB per licence
OneDrive standalone plans 0.50 GB per licence
The OneDrive created for each licensed user Accounted separately; not part of the figures above

Where the space has gone

Look here Why it matters
Active sites, sorted by storage used Identifies the handful of sites holding most of the data
Storage Metrics on a large site Breaks usage down by library and folder within that site
Both recycle bin stages Their content is part of the organisation’s total storage limit
Library versioning settings Version history is commonly the single largest consumer
Sites belonging to deleted groups or leavers Often retained, forgotten and still drawing on the pool

Automatic or manual site limits

By default SharePoint manages site storage automatically: the pool is central and sites draw from it as they need to, with nothing to divvy up. Manual management exists for administrators who want to cap individual sites, and it is the reason a single site can be full while the tenant is not. Switching from manual back to automatic resets every site’s limit to 25 TB, which is worth knowing before you make the change on a Friday. When you do set a limit by hand, set the notification threshold alongside it so the site owner is warned rather than surprised.

There is also a route for site administrators who hit a limit: from Site Settings, under Site Collection Administration, Storage Metrics has a Request more quota action that sends a request to global administrators. It is worth pointing people at, because the alternative is a ticket that describes the symptom rather than the site.

Deleting content to free storage is irreversible once both recycle bins are emptied and the retention window has passed. Confirm your backup or retention position before deleting anything to make a figure look better.

Clean-up in the order that actually recovers space

  1. Empty both recycle bin stages on the largest sites – the fastest recovery, and reversible until you empty the second stage.
  2. Trim version history where libraries hold large, frequently edited files.
  3. Archive or remove sites with high usage and no recent activity.
  4. Move cold content that must remain discoverable into an archival tier rather than deleting it.
  5. Only then decide whether the remaining content genuinely needs more capacity.

When a licence is the actual fix

If the pool itself is exhausted and the content genuinely has to stay, more capacity is the only real fix. There are two legitimate routes. Microsoft’s SharePoint Online limits documentation names an Extra File Storage add-on, which increases the tenant pool directly and takes effect without touching a single site. The other is licences: each purchased licence contributes to the pool as well as giving somebody an account, which is why the available figure sometimes falls after a renewal that reduced the seat count. Neither should be the first step. Trimming version history, emptying recycle bins and removing dead sites frequently recovers a large amount for nothing, and it is worth doing before you buy capacity for content nobody needs. Arco can check that your current base plan is eligible for the storage add-on and supply either route.

Every code this article covers

Code What it points at Source
SharePoint Online is out of storage space The pooled tenant storage is exhausted. Microsoft documents the condition – a tenant operating above its storage limits risks being put into read-only mode – but does not publish this literal string not published by the vendor
Your storage is full The user-facing form of the same refusal, shown when an upload is rejected. The condition is documented; the literal string is not not published by the vendor
This site has exceeded its maximum file storage limit One site has reached the storage limit set for it while the tenant may still have room. Site limits and the request-more-quota route are documented; the literal string is not not published by the vendor
Unable to create new file. Site quota is full. A write refused at site scope because the site’s storage limit leaves no space. The behaviour is documented; the literal string is not not published by the vendor

Confirm the fix worked

  1. The tenant storage figure in the SharePoint admin center shows available space.
  2. A small test file uploads to the affected site.
  3. Re-running the site listing sorted by storage shows the sites you cleaned up have dropped.
  4. Version limits and site storage limits are set deliberately, with notification thresholds, so the same shortage does not recur silently.

Questions people ask about this

Does OneDrive use the same pool?

The OneDrive created for each licensed user is accounted for separately from the SharePoint tenant figures. The exception is OneDrive standalone plans, which Microsoft documents as contributing 0.50 GB per licence to tenant limits.

How much storage does each licence add?

For most Business, Enterprise and Office 365 plans, 10 GB per purchased licence on top of the 1 TB base. Microsoft 365 F1 and F3 and Office 365 F3 add nothing per licence. The arithmetic runs both ways, so a tenant that reduces its licence count sees its available storage fall.

What is the largest a single site can be?

25 TB, which is 25600 GB in the admin centre. Switching site storage management from manual to automatic resets every site’s limit to that figure.

Does the recycle bin count against storage?

Yes. Microsoft recommends monitoring the site recycle bin and emptying it regularly, and states that the space it uses is part of the organisation’s total storage limit.

Is buying the add-on always the right answer?

No, and it should usually be the last step. Trimming version history, emptying recycle bins and removing dead sites frequently recovers a large amount for nothing. Buy capacity when the content is genuinely needed and genuinely that large.

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