A Microsoft file hosting and synchronization service.
Yes. OneDrive on Mac can be stored on an external drive, and external drives are fully supported.
Key limits and requirements:
- For changing OneDrive storage to external storage, the drive must be non-ejectable.
- Removable USB drives are not supported.
- On Mac, the external drive should be formatted as APFS.
- Folder Protection cannot be set up with OneDrive on external memory.
If moving an existing OneDrive location to an external drive on Mac:
- Select the OneDrive cloud icon in the menu bar.
- Select Help & Settings > Preferences.
- Go to the Account tab.
- Select Unlink this Mac.
- Run OneDrive setup again and choose the new file location on the external drive.
If local disk space is the concern, Files On-Demand is also available on Mac.