December 1, 2025: Microsoft implemented an update to Dataverse storage entitlements, significantly increasing the default capacity for Microsoft Power Platform and Dynamics 365 customers. This change raises the baseline database and file storage included per tenant and simplifies storage allocation across systems to make capacity planning easier. The increased storage is automatically available to all eligible organizations, allowing more data to be stored without hitting previous limits.
What is Dataverse?
Microsoft Dataverse is a secure, cloud-based data platform that underpins Dynamics 365 (Microsoft’s suite of enterprise business applications) and the Power Platform (a low-code platform including Power Apps, Power Automate, Power Pages, etc.). It stores and manages business information – for example, customer records, application data, logs, and file attachments – enabling these applications to share and use data seamlessly. By centralizing data in Dataverse, organizations ensure consistency and accessibility of core business data across various apps and workflows.
Key changes introduced in the December 2025 update include:
- Increased default database capacity – The standard Dataverse database storage entitlement per tenant has been significantly raised for both Power Platform and Dynamics 365 licenses. For example, a Power Apps Premium environment now includes 20 GB of Dataverse database storage (up from 10 GB), and a Dynamics 365 Sales or Customer Service environment includes 30 GB (previously 10 GB). Even Dynamics 365 Customer Insights saw an increase to 45 GB (from 25 GB). In practice, most organizations receive 2–3 times more Dataverse storage by default than before. This additional capacity helps accommodate growing data (including AI-generated content and logs) without requiring immediate add-ons.
- Increased file storage for Dynamics 365 apps – In addition to database space, file storage limits have also expanded for certain Dynamics 365 applications. For instance, Dynamics 365 Sales, Customer Service, Field Service, and Contact Center now each include 40 GB of file storage (up from 20 GB) for storing documents and attachments. Dynamics 365 Customer Insights’ file capacity increased to 60 GB (from 40 GB). This means users can attach and retain more files (such as invoices, images, or PDFs) within Dataverse-backed apps before needing extra storage.
- Unified Dataverse & ERP storage pool – For Dynamics 365 Finance and Supply Chain Management (Microsoft’s enterprise resource planning (ERP) applications), the Dataverse storage entitlement is now combined with the ERP database storage into a single shared pool per tenant. Previously, these were separate quotas, which could cause one system to hit a limit while capacity remained unused in the other. Now, storage can be flexibly allocated wherever needed between Dataverse and the core ERP, simplifying management. (This change applies to Dynamics 365 ERP apps like Finance and Operations; it does not include Dynamics 365 Business Central.) In effect, organizations with premium ERP licenses gain a much larger combined storage pool, ensuring that increasing data (for example, additional transaction context, AI-generated insights, or attachments) can be stored without one system running out of space early.
Licensing
These Dataverse capacity enhancements are reflected in Microsoft’s December 2025 licensing guides and are applied automatically for all existing customers. No action or additional purchase is required to receive the new limits – the extra storage is included as part of the standard entitlements (at no extra cost) and has already been rolled out to customer tenants. Administrators can simply find the updated capacity in the Power Platform Admin Center, with the platform showing the increased limits in effect.
Organizations should review how these changes impact their licensing and storage plans. It’s always wise to ensure you remain compliant and optimized under the new model. For any questions or guidance on Microsoft licensing and how to best leverage the increased Dataverse capacity, consult with a licensing expert at SCHNEIDER IT MANAGEMENT. Their expertise can help interpret the nuances of the licensing update and advise on any adjustments needed for your specific environment.
More Information
For more details, please refer to Microsoft’s official announcement and documentation:
- Microsoft Power Platform Blog – “Flexible Dataverse capacity for apps and agents” (December 4, 2025) – Original announcement of the Dataverse capacity changes (includes a detailed explanation and a diagram of the new model). Source: https://www.microsoft.com/en-us/power-platform/blog/2025/12/04/dataverse-capacity/
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