SharePoint storage

How Microsoft 365 Archive helps reduce SharePoint storage cost

SharePoint storage is expensive. Use Microsoft 365 Archive to move unused content to cheaper cold storage and optimize your quota effectively.
Martin Hattingh
Updated
February 24, 2026
2 min to read

SharePoint storage is expensive, and if you’re running out of your allocated quota, it makes sense to use it as cost-effectively as possible. You may have wondered whether it's possible to move unused content out of SharePoint to a less expensive location. This guide explains how you can use Microsoft 365 Archive to solve this problem.

Why should you archive SharePoint content?

Not all SharePoint content is actively used. Older, inactive content may still need to be retained for regulatory or compliance purposes, but it doesn't need to remain in active SharePoint storage with high storage costs. In these cases, archiving makes sense.

How does Microsoft 365 archiving work?

To get started with Microsoft 365 archive, use this guide.

Can I archive files with Microsoft 365 archive?

It's important to note that - as of this article in February 2026 - archiving is limited to site-level only, with more granular file-level archiving in development by Microsoft, planned for general availability by July 2026.

What happens when I archive a SharePoint site?

When you archive a site, several things happen:

User availability

The site becomes unavailable to normal users, they see a "This site is archived" banner. Because it's not accessible, it is also by implication read-only and content can no longer be added, edited or deleted.

Screenshot of the message a user sees when trying to access an archived SharePoint site

Admin availability

The site appears in the SharePoint Admin Center under Archived sites, and admins can choose to reactivate it.

Screenshot of Microsoft 365 Archive reactivation button

Search results

The site is removed from end-user navigation and search results. Neither humans nor Copilot cannot discover and surface results from it.

Archived sites and their contents are still returned in searches done via Microsoft Purview, such as when using eDiscovery.

Metadata, permissions and version history

All metadata, permission configuration and full version history is retained both during archiving and reactivation.

Can I move files into an archive site once it's already archived?

No, once a site has been archived, it's not accessible. This means you unfortunately cannot maintain a site named say "Finance archive" and move files which aren't actively needed anymore into it over time.

Can I restore a site after it's been archived?

Yes, you can reactivate a site after it's been archived.

  • Within 7 days after archiving, the restore is instant
  • After 7 days, there is a 24-hour reactivation delay

Once you've reactivated a site, you cannot archive it again for 120 days (4 months). This prevents "hot-swapping" as a way to prevent paying storage fees by constantly moving sites in and out of the archive.

How does Microsoft 365 Archive reduce SharePoint storage costs?

Archiving a site moves it to cold storage within Microsoft 365 archive at a reduced storage rate of $0.05 per GB, billed against the Azure subscription that you configured during setup, compared to live SharePoint storage at $0.20 per GB.

Archive storage is 75% cheaper.

Allocation and billing depends on your base quota and how much additional storage you have already purchased.

If you are already purchasing additional SharePoint storage

The Azure subscription is billed monthly PAYG (Pay As You Go) at the reduced $0.05/GB rate, instead of $0.20/GB.

If you're within your base quota and not yet purchasing additional storage

If you still have remaining base storage quota available (and thus you're not yet purchasing additional storage), archived sites don't trigger any Azure subscription billing charges.

If you're over your base quota but not yet purchasing additional storage

If you've exceeded your allocated quota but you're not yet paying for storage, archived sites will trigger Azure subscription billing charges. Billing for archive storage does not depend on whether you purchase additional storage — it depends solely on whether your usage exceeds the included quota.

According to Microsoft: “This meter is charged only when archived storage plus active storage exceeds the included or licensed allocated SharePoint storage capacity limit of the tenant.”

How do I identify sites to archive?

The best candidates for archiving are those no recent activity, a large percentage of inactive files, no further operational requirement, or lack of ownership.

Read more about easy storage wins to be had with archiving.

Need to reduce SharePoint storage costs?
Use SProbot to find and deal with redundant, obsolete and trivial content on your tenant

See how SProbot can help you cut operational costs

We'll show you how to save on storage, tame content sprawl, and improve security.

Get a demo