Overview of Inactive Files Policy
Microsoft has announced a new automated archiving feature for SharePoint. This allows administrators to set rules that move files to a 'cold-storage' tier—a cheaper storage area for data that is rarely used—if they have not been accessed for a specific period. This period can be set anywhere between six and 48 months.
The feature is currently available in public preview. At this stage, it can only be configured using PowerShell, which is a command-line tool used by technical staff to manage Microsoft 365 settings. A general release with a standard visual interface is expected towards the end of 2026.
How the archiving works
When a file is moved to the Microsoft 365 Archive tier, it remains in its original location within your SharePoint folders. It keeps its original permissions, meaning only the people who could see it before will be able to see it now. It also remains searchable and retains its compliance settings.
However, there is a difference in how these files are accessed. Because they are in cold storage, there may be a delay when opening them, and there are specific costs associated with restoring them to active storage. To prevent accidental moves, the system includes a 'What-If' mode. This allows us to run a simulation to see which files would be affected before the policy is turned on.
Costs and requirements
To use this feature, your business must have SharePoint Advanced Management. Additionally, Microsoft 365 Archive must be enabled, and you must have a pay-as-you-go billing arrangement set up through an Azure subscription.
This is primarily a tool for controlling costs. If your SharePoint storage is nearly full, archiving inactive files is usually more cost-effective than purchasing additional standard storage. We do not yet have the exact pricing per gigabyte for the restoration of files, but Microsoft generally charges a lower monthly fee for storage in exchange for a fee when the data is accessed.