MC1387809: Microsoft 365 Archive: File-level archiving will be enabled by default for existing customers

File-level archiving in Microsoft 365 Archive will be enabled by default for existing customers starting July 6, 2026. It allows archiving individual SharePoint files to cold storage with compliance maintained. Admins can disable or limit this feature via PowerShell. Users with edit permissions c...

[What and Why]

We’re announcing an update to Microsoft 365 Archive with the General Availability of file-level archiving, which will be enabled by default for tenants that already have Microsoft 365 Archive configured. This update simplifies adoption and enables organizations to archive individual SharePoint files to a cost-efficient cold storage tier while maintaining discovery, compliance, and governance capabilities.

This message applies specifically to existing Microsoft 365 Archive customers and provides advance notice so you can evaluate and adjust settings before the default-on change takes effect.

This message is associated with Microsoft 365 Roadmap ID 477371.

[Rollout Schedule]

General Availability (Worldwide): Default-on enablement begins on July 6, 2026, and is expected to complete by late July 2026.

[Impact on Your Organization]

Who is affected

  • Tenants with Microsoft 365 Archive already enabled and haven't specifically disabled file-level archiving already
  • SharePoint users with edit permissions on files
  • Administrators managing Microsoft 365 Archive and SharePoint Online

Platforms/Services

  • SharePoint Online (web)
  • Microsoft 365 Archive

What will happen

  • File-level archiving will be enabled by default at the tenant level and across all existing and newly created SharePoint sites, unless the scope has been previously reduced by administrators.
  • A new Archive action will appear in SharePoint on the web for users with edit permissions.
  • Users can archive files to the Microsoft 365 Archive cold storage tier. Archived files must be reactivated before they can be accessed.
  • Existing retention policies, sensitivity labels, permissions, eDiscovery, and audit logging continue to apply.
  • During preview, file-level archiving required explicit admin opt-in. At General Availability, it will be enabled by default for applicable tenants.
  • Archiving usage is billed based on the existing pay-as-you-go pricing model and may increase storage costs depending on usage patterns.
  • This update does not replace or remove existing site-level archiving capabilities.

[Action Required / Recommendations]

No immediate action is required. However, administrators should review and prepare for this change.

  • Determine whether the default enablement of file-level archiving aligns with your organization's needs before July 6, 2026.
  • If you do not want file-level archiving enabled tenant-wide, disable it by running: Set-SPOTenant -AllowFileArchive $false
    • You can re-enable it at any time: Set-SPOTenant -AllowFileArchive $true
  • If needed, limit availability for specific sites: Set-SPOSite -Identity <site_url> -AllowFileArchive $false
  • To prevent file-level archiving from being enabled on new sites, run: Set-SPOTenant -AllowFileArchiveOnNewSitesByDefault $false
  • Notify helpdesk and SharePoint admins about the new Archive action and file reactivation requirements.
  • Inform users about archiving behavior and access implications.

Learn moreManage Microsoft 365 Archive | Microsoft 365 Archive | Microsoft 365 | Microsoft Learn

[Compliance considerations]

QuestionAnswer
Does the change alter how existing customer data is processed, stored, or accessed (for example, documents, emails, chats)? If so, how and to what extent?Yes. This change introduces a cold storage tier for SharePoint files, where files are archived and require reactivation before they can be accessed, altering how stored data is accessed. While in the archive tier, the data stays compliantly stored as M365 data.
Does the change include an admin control, and can it be controlled through Entra ID group membership?Yes. Administrators can control the availability of file-level archiving at the tenant or site level using administrative configurations such as PowerShell.
Does the change allow a user to enable and disable the feature themselves?Yes. On sites enabled for file-level archiving, users with appropriate permissions can initiate archiving and reactivation actions on files, effectively controlling whether files are archived or active.