Microsoft updates Dataverse capacity and entitlements for Dynamics 365, Power Platform

Microsoft has announced increases to the default Dataverse storage capacity that customers will get for most Dynamics 365 apps and Power Platform services. 

The change went into effect on December 1, 2025 and does not include D365 Business Central. For other Dynamics 365 ERP applications, Dataverse and storage “will now be combined into a shared pool per tenant,” the stated in a new message in the Microsoft 365 admin center

The updated storage entitlements will automatically appear in the Power Platform admin center, according to Microsoft.

Dataverse database and file entitlements vary by product, and the increases in December also appear to have varied. In an analysis of the change, Jukka Niiranen noted increases in Dataverse database capacity between 39 percent and 200 percent, with similar increases for file storage.

Dataverse database storage is notoriously expensive at $40 per GB per month, making its cost a serious consideration for app development, integrations scenarios, and data warehousing architectures.

For Dynamics 365 F&O customers, Dataverse capacity is an important cost factor in deciding if and how to bring their ERP data into Microsoft OneLake in Fabric for analysis. With Microsoft’s Fabric Link, data from D365 or Power Platform remains in the Dataverse security and governance boundary. Costs stem from Dataverse storage levels calculated from license entitlements and add-on capacity.

The change in licensing policy also comes at a time when Microsoft has high hopes for the role Dataverse will play in enabling AI scenarios. Dataverse MCP is now generally available and the company has positioned it as “[enabling] intelligent, secure, and standardized access to your data—tables, records, and more—across a variety of MCP clients.”