UNIVERSITY PARK, Pa. — Microsoft is transitioning away from low-cost online storage for higher education customers, which will impact Penn State’s use of Office 365 services. After receiving an extension from Microsoft, Penn State expects these changes to impact users starting in August 2025.

The University’s current storage consumption across OneDrive, SharePoint, and Exchange/Outlook mailboxes is approximately 4.6 petabytes, which exceeds the estimated allocation Penn State will receive of 3.1 petabytes. 

As part of its commitment to strategically managing the University’s email and storage resources in a cost-effective and sustainable manner, Penn State IT has secured an extension from Microsoft in order to proactively evaluate solutions to optimize the University's storage utilization.

Additionally, to support these efforts, Penn State IT is planning to initiate a "Data Downsizing" campaign focused on reducing outdated and duplicative data while aligning with the University's General Records Retention Schedule.  

The change to Microsoft’s storage offering means there will be no remaining University-supported storage offerings that provide unlimited capacity without extra cost to the user, units or Penn State.

Penn State IT is collaborating closely with the University's research community via a research storage initiative to thoroughly assess storage requirements and identify appropriate solutions. These may include leveraging Penn State's research collaboration tools and services; Microsoft’s archiving capabilities; and more.

Penn State IT and local IT units have begun working with faculty and researchers whose teaching and research data storage needs may exceed the University's new allocation to conduct a comprehensive review of all available options and identify solutions. 

Users do not need to take any other steps at this time. Additional updates will be provided to the Penn State community throughout the summer.