OneDrive for Business storage quota not updating for licensed users

Hagler Larry 80 Reputation points
2026-01-18T07:38:12.2066667+00:00

As a Microsoft 365 admin, I have users assigned valid OneDrive for Business licenses, but their personal OneDrive storage quota remains at the default (e.g., 5 GB) instead of the expected 1 TB. The issue persists after license re-assignment and waiting for propagation.

Microsoft 365 and Office | OneDrive | For business | MacOS
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Answer accepted by question author
Anonymous
2026-01-18T08:39:17.8733333+00:00

Hi Hagler Larry

Thank you for reaching out to Microsoft Q&A Forum and sharing your experience.

As far as I know, this behavior typically stems from manual storage limits configured in SharePoint or OneDrive admin settings that override license defaults, delays in account synchronization, lingering effects from prior licenses, or tenant-wide configurations that prevent automatic updates.

Therefore, in this context, you can try the following approaches to see whether they resolve the issue:

1, Verify and adjust user quota

  • Navigate to Users > Active users > Select the user > OneDrive tab.
  • Confirm the storage quota is set to 1024 GB.

2, Update Site storage manually

  • Go to SharePoint admin center > Sites > Active sites.
  • Filter for the user’s OneDrive site, select it, then open Settings.
  • Manually set the storage limit to 1024 GB.

In case the problem still persists, you can try on the PowerShell approach for storage advanced control.

Run this cmdlet:

Set-SPOSite -Identity https://yourtenant-my.sharepoint.com/personal/user_email_domain -StorageQuota 1048576

Or reset to default:

Set-SPOSite -Identity <URL> -StorageQuotaReset

Notably, after updating the quota, ask the user to sign out and sign back in to refresh the settings, and verify that tenant-wide defaults in the SharePoint admin center match the license entitlements.

Please let me know how you get on in the comment section.

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  1. AI answer

    2026-01-18T07:38:21.4+00:00

    If the OneDrive for Business storage quota for licensed users is not updating as expected, there are a few troubleshooting steps you can take:

    1. Check License Assignment: Ensure that the users have been assigned the correct OneDrive for Business licenses that provide the expected storage quota (1 TB). Sometimes, even if a license appears to be assigned, it may not be the correct type.
    2. Wait for Propagation: After assigning or re-assigning licenses, it can take up to 24 hours for the changes to propagate. If you have already waited this period, proceed to the next steps.
    3. Verify Storage Settings: In the Microsoft 365 admin center, check if there are any specific storage limits set for the users. If a specific limit is set, it may override the default quota.
    4. Run Diagnostics: Use the diagnostics tool in the Microsoft 365 admin center to run tests on the OneDrive storage quota. This can help identify any issues that may be preventing the quota from updating.
    5. Contact Support: If the issue persists after trying the above steps, consider reaching out to Microsoft support for further assistance.

    Note that if a user is over the new limit after a decrease, their OneDrive will become read-only, which can also affect their ability to use the storage as expected.

    References:

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