Microsoft has officially updated its Microsoft Licensing Guide in December 2025, announcing a significant increase in standard Dataverse storage capacities. This update applies to Power Platform and Dynamics 365 users and brings more database and file storage without immediate additional costs.
For organizations using Power Apps, Power Automate, Power Pages, Copilot Studio, and Dynamics 365, this update is important because Dataverse is the core platform where business data is stored. With increased capacity, businesses can now build, scale, and run solutions more efficiently.
What Is Microsoft Dataverse?
Microsoft Dataverse is a secure cloud-based data platform that stores and manages business data used by Power Platform and Dynamics 365 applications. It helps organizations store structured data such as:
- Customer records
- Application data
- Automation logs
- Files and attachments
- AI and system data
Every Power Platform solution relies on Dataverse to function properly. When Dataverse capacity is limited, apps and workflows may slow down or cease to function as expected.
Why Did Microsoft Increase Dataverse Capacity?
As more organizations adopt low-code and AI-powered solutions, the amount of data generated has grown rapidly. Businesses are now using Power Platform for:
- Enterprise applications
- Business process automation
- Customer engagement
- AI copilots and analytics
Microsoft introduced this update to ensure that storage limitations do not block innovation and that users can scale their solutions smoothly.
New Standard Dataverse Capacities (As per Microsoft Licensing Guide – December 2025)
Below are the updated standard Dataverse capacity values, compared with earlier limits.
Dynamics 365 Applications
(Customer Service, Sales, Field Service, Contact Center)
- Dataverse Database:
30 GB (previously 10 GB) - File Storage:
40 GB (previously 20 GB)
Customer Insights
- Dataverse Database:
45 GB (previously 25 GB) - File Storage:
60 GB (previously 40 GB)
Power Platform Licenses
- Power Apps Premium:
20 GB (previously 10 GB) - Power Apps Per App:
15 GB (previously 5 GB) - Power Automate Premium:
20 GB (previously 10 GB) - Power Pages:
15 GB (previously 5 GB)
These increases mean most users now receive 2x to 3x more Dataverse database storage as part of their existing licenses.
What Is the Advantage for Users?
1. More Storage at No Extra Cost
Users receive significantly more Dataverse storage without immediately purchasing paid add-ons. This helps organizations control costs while expanding their solutions.
2. Less Dependency on Additional Capacity Add-Ons
Earlier, many organizations reached storage limits quickly. With higher standard capacity, businesses can run apps and automation longer without extra purchases.
3. Better Performance for Apps and Automation
When Dataverse capacity is sufficient:
- Power Apps load faster
- Power Automate workflows run more reliably
- System logs and history are retained properly
This improves overall platform performance.
4. Better Support for AI and Data-Heavy Solutions
AI-powered solutions generate large volumes of data, including logs and conversation history. The increased capacity supports:
- Copilot Studio agents
- AI insights
- Automation analytics
5. Easier Capacity Planning for IT Teams
With higher default limits, IT administrators spend less time monitoring storage usage and more time focusing on optimization and security.
Real-World Use Cases
Business Applications
Departments such as HR, finance, and operations can store growing records without performance issues.
Workflow Automation
Approval flows and automated processes can maintain detailed execution history without hitting limits early.
Customer Engagement
CRM and customer support solutions benefit from increased database and file storage for customer records and attachments.
Important Note on Availability
Microsoft is rolling out the new Dataverse capacity values gradually.
Some organizations may already see the increased storage in their environment, while others will receive it in the coming weeks.
Admins are advised to regularly check their Power Platform Admin Center for updated capacity values.
Why This Update Matters for the Future
This Dataverse capacity increase shows Microsoft’s long-term commitment to:
- Scalable low-code platforms
- Enterprise-grade automation
- AI-driven business solutions
By removing early storage barriers, Microsoft enables organizations to adopt Power Platform more confidently.
Frequently Asked Questions (FAQ)
Is this capacity increase automatic?
Yes, the updated capacity is applied automatically as Microsoft rolls it out.
Does this apply to all tenants?
Yes, it applies at the tenant level based on the licenses owned.
Do users still need to buy additional capacity?
Only if storage usage exceeds the new standard limits.
Is this related to Power BI licensing?
No, this update is separate from Power BI licensing changes.
Conclusion
The December 2025 Dataverse capacity increase is a valuable update for Power Platform and Dynamics 365 users. By providing more database and file storage by default, Microsoft has made it easier for organizations to scale apps, automation, and AI solutions without early limitations.
This update reduces costs, improves performance, and supports long-term digital growth—making Microsoft Power Platform more powerful and future-ready than ever.