This article was updated in January 2026
If you work with SharePoint in Microsoft 365, you’ve probably heard about the Microsoft 365 Archive SharePoint option. But what exactly is it? At its core, Microsoft 365 Archive SharePoint is a way to store old SharePoint sites that aren’t in use but might be needed later. This helps keep your active workspace clean and your storage costs down. Instead of deleting inactive sites, you archive them, freeing up space without losing data. That way, when you need to get back to an archived site, you can reactivate it, though some fees might apply.
By the end of this article, we’ll provide you with a checklist to help you enable Microsoft 365 Archive for SharePoint, archive inactive sites/security settings, and manage reactivation costs and compliance.
What is Microsoft 365 Archive?
Microsoft 365 Archive for SharePoint is designed to handle inactive SharePoint sites without removing them permanently. Think of it like putting old files in a storage box instead of tossing them out. This archive option keeps the data safe but moves it out of your everyday environment. It helps businesses reduce clutter in their active SharePoint libraries and better manage storage.
Archiving is especially helpful for organizations with lots of sites that are no longer used but must be kept for compliance or historical reasons. Instead of paying for full active storage, archived sites use a cheaper storage tier. The content remains intact and can be accessed if needed.
Many businesses choose to archive inactive sites to keep their SharePoint environment clean. Archiving inactive sites reduces clutter and improves overall system performance. This process ensures that important data is preserved without occupying expensive active storage space.
The archive is not just storage. It includes built-in tools in the SharePoint admin center to select and manage which inactive sites to archive, easily reactivate them when needed (now free of charge), and monitor any applicable storage costs based on your tenant quota. Microsoft has made this feature easy to enable through its SharePoint admin center. For organizations seeking advanced archiving options, third-party archiving tools like ShareGate, AvePoint, and Squirrel offer additional features and flexibility for managing SharePoint archives.
How does it work?
When you need something from an archived site, you can request reactivation. This process restores the site to normal SharePoint storage, making it fully functional again. There might be a reactivation fee, depending on your plan and the size of the data.
To get a hands-on demonstration of how archiving and reactivation work in practice, watch this overview video that covers setup and key features.
Why archive instead of deleting?
Deleting a site removes all its data permanently. Archiving lets you keep data for legal or operational needs without paying the higher price for active storage. This way, important information remains available without cluttering active workflows.
“Microsoft 365 Archive delivered what we needed, a cost-effective archiving solution that keeps content within our core Microsoft 365 ecosystem.” – said by Axel Mellars, who works as Head of Collaboration Platforms at Dentsu International, a global marketing services company.
Cost Model and Pricing (GB Rates)
Pricing for Microsoft 365 Archive depends primarily on whether your total storage (active SharePoint + archived) exceeds your tenant’s allocated SharePoint storage quota. As of 2026, the model is designed to encourage archiving inactive sites without hidden fees, making it significantly more cost-effective than in earlier versions.
Here’s a quick list of the main pricing factors in 2026:
- Archive storage cost: $0.05 per GB per month — but only charged for the portion that exceeds your tenant’s licensed SharePoint quota.
- Reactivation: Completely free (no fees since March 31, 2025).
- Re-archiving restriction: After reactivation, the same content cannot be re-archived for four months.
- Potential savings: Up to 75% compared to keeping data in active SharePoint storage ($0.20/GB/month standard rate).
- No additional charges for excess if within quota; billing is pay-as-you-go via Azure-linked subscription.
According to a study on cloud storage optimization (2024, Syskit), organizations can save up to 75% on excess storage costs by using Microsoft 365 Archive, provided sites are not frequently reactivated. Understanding these updated points helps you accurately estimate costs and maximize savings by archiving inactive sites.
How is the archive priced?
Archive storage is metered at $0.05 per GB per month, but you only pay when your combined active and archived storage exceeds the tenant’s included or licensed SharePoint quota. If you’re under quota, archiving is effectively free — it just moves data to a lower-cost tier without extra billing. This contrasts with active SharePoint storage, which is typically charged at $0.20 per GB per month for any excess beyond quota.
Reactivation Explained
Since March 31, 2025, reactivating an archived site is free of charge — no per-GB or per-site fees apply. Reactivation restores the site to active status, usually taking up to several hours or days depending on data size (rehydration time varies). The only limitation: you cannot re-archive the reactivated content for four months to prevent abuse of the free reactivation.
Pricing Example Table
To illustrate real-world impact in 2026, here’s an updated comparison and savings example (assuming your tenant has already used its full quota):
| Scenario | Active Storage Cost | Archive Storage Cost | Monthly Cost | Savings vs Active |
|---|---|---|---|---|
| Keep 100 GB in active storage | $20 ($0.20/GB) | $0 | $20 | — |
| Archive 100 GB (exceeds quota) | $0 | $5 ($0.05/GB) | $5 | 75% |
| Reactivate archived site (any size) | Free | — | $0 | — |
| Archive 500 GB (exceeds quota) | $0 | $25 | $25 | Up to 75% |
These figures are based on standard rates; actual billing depends on your tenant quota and exact usage. Always verify current details in the Microsoft 365 admin center or official documentation, as pricing can vary slightly by region or education/commercial plans (e.g., education tenants may pay $0.02/GB in some cases).
Impact on Storage and Cost Savings
Switching inactive SharePoint sites to archive affects your storage numbers and billing. It also helps optimize how your SharePoint environment runs.
Storage Reduction Benefits
Before archiving large volumes of data, ensure your migration processes are optimized to avoid unnecessary storage bloat. Archiving inactive sites frees up space in your active SharePoint storage pool. This keeps the system faster and less cluttered. It can reduce the need to buy extra storage licenses.
Here’s a table summarizing the potential impact:
| Storage Type | Cost per GB (USD) | Access Speed | Editing Available | Typical Use Case |
|---|---|---|---|---|
| Active SharePoint | $10 | Instant | Yes | Day-to-day collaboration |
| Archive Storage | $2 | Several hours/days | No | Long-term inactive storage |
| Excess Storage Charge | $5 | N/A | N/A | When exceeding limits |
How much can you save?
By moving inactive data to archive, you can lower your storage costs by up to 80%. But savings depend on how much data you keep archived and how often you reactivate sites.
What happens if you don’t archive?
Without archiving, inactive sites take up expensive active storage space. This can drive costs up and clutter your SharePoint environment. It may also slow down search and collaboration tools.
How does archive affect backup and compliance?
Archiving doesn’t replace your backup or compliance requirements. Archived data still needs to meet your company’s rules for retention and security. Microsoft 365 Archive SharePoint stores data securely, but you should verify that archived content remains compliant with your policies. Some organizations keep archived sites longer for legal reasons, making archive storage a perfect fit.
Can archived sites be deleted permanently?
Yes, sites in archive can be deleted, but deletion is permanent. Microsoft 365 Archive SharePoint keeps sites safe while archived. If you delete a site, all content is lost forever. Be careful when cleaning archive storage to avoid accidental data loss.
When to Retrieve Archived Sites
You might need to reactivate archived sites for many reasons. Maybe a project restarts, or a team needs old data. Knowing when and how to retrieve sites is key to effective archive use. Some common situations where retrieval makes sense include:
- A business audit requires access to past data.
- Reopening a previously closed project.
- Legal holds or compliance requests.
- Reviewing old documents for new initiatives.
- Merging archived content into new SharePoint sites.
Being aware of these triggers helps you plan archive use smartly and avoid unexpected costs.
Steps to Reactivate Archived Sites
Reacting to a need for archived data involves a few clear steps. Here’s how you can bring an archived SharePoint site back into active use quickly and efficiently:
- Log into your Microsoft 365 SharePoint Admin Center.
- Locate the archive section and find the site to retrieve.
- Select the site and click “Reactivate.”
- Confirm any fees and storage adjustments.
- Wait for the site to restore — this can take hours or days.
- Once active, verify data integrity and access.
Reactivate carefully to avoid unnecessary fees and downtime.
Reactivation Fee Reminder
Keep in mind, reactivation involves costs. Plan ahead to avoid frequent toggling between archive and active status. Frequent retrieval can negate storage savings.
Managing Archive with Business Needs
Set clear policies on when sites should be archived and for how long. This avoids clutter and controls cost. Communicate with your teams about archive benefits and retrieval processes.
Is there a limit to how many sites can be archived?
Currently, Microsoft doesn’t impose a strict limit on the number of sites you can archive, but your overall storage quotas still apply. Managing archived sites effectively requires good governance to prevent unnecessary storage use or extra fees.
How do archived sites appear to users?
Archived SharePoint sites do not show up in standard site listings or search results. Users cannot edit or add content until the site is reactivated. This ensures inactive data doesn’t interfere with daily work but stays accessible when needed.
Additional HowTo: Managing Your Archive Efficiently
To get the most out of Microsoft 365 Archive SharePoint, here are a few tips to keep your archive organized and cost-effective. Consider these best practices:
- Regularly review your SharePoint sites and identify inactive ones. For automating the identification of inactive sites before archiving, consider integrating Power Automate to streamline your workflows
- Move sites to archive when they meet your inactivity criteria.
- Avoid frequent reactivations; plan retrieval carefully.
- Monitor storage usage monthly to spot trends.
- Communicate archive policies clearly across your organization.
Following these steps makes archive management smoother and more predictable.
To get a clear understanding of how Microsoft 365 Archive works in practice, you can watch this short overview video. It covers the key archiving features in Microsoft 365, explains how to set it up for SharePoint sites, and highlights the storage management and cost savings benefits.
Todo sobre Microsoft 365 | All about Microsoft 365, Microsoft 365 – An overview of Microsoft 365 Archive
FAQ
Can users still find files in SharePoint search after a site is archived?
No. Once a site is archived with Microsoft 365 Archive, all its content is removed from the search index. The content becomes completely invisible to users in regular SharePoint searches. You must reactivate the site to make its content searchable again.
Does eDiscovery still work on M365 archived sites?
Yes. Content in an archived site remains discoverable for eDiscovery (Premium). This allows your compliance and legal teams to search for and export data as needed. However, other compliance features, like retention policies, will no longer actively apply.
How long does it take to restore an archived site?
Reactivation is not instant. It can take up to seven days to fully restore a site from the archived state. You must factor this delay into any plans to retrieve archived data. The site is completely inaccessible during this restoration period.
Does it cost extra to restore or reactivate an archived site?
Yes. Microsoft 365 Archive has a pay-as-you-go billing model. You are charged a lower rate for the archived storage, but you will also be charged a separate fee for any reactivation. This reactivation cost is a one-time charge per site restoration.
What happens to my site permissions when I archive it?
All site permissions are fully preserved. When you archive a site, SharePoint freezes its permissions along with the content. Upon reactivation, all original user and group access levels are restored exactly as they were, with no need for reconfiguration.
Conclusion
Microsoft 365 Archive SharePoint is a practical way to manage inactive SharePoint sites. It helps reduce storage costs by moving unused sites into a cheaper archive. This keeps your active environment clean and efficient. While archive storage costs less per GB, watch for reactivation fees if you retrieve sites often. Proper use of archiving leads to better storage management and cost savings.
When to archive or retrieve sites depends on your business needs, compliance rules, and budget. Use the archive to store inactive content securely without losing access. Just remember to plan site reactivation carefully to avoid unexpected fees.
If you want to reduce clutter, save money, and still keep important SharePoint data, Microsoft 365 Archive SharePoint is a tool worth considering. We’ve created a checklist to help you optimize storage costs, ensure access to essential content, and ensure your archive sites comply with your organization’s compliance and governance policies. A downloadable version is available for your convenience.
Sources
- Research: 2024, Syskit. Study on Microsoft 365 Archive Cost Savings
- Quote: Axel Mellars, 2025, Tech Community Blog. What’s new with Microsoft 365 Backup and Archive – Ignite 2025
- Pricing and Savings Figures: Microsoft Learn, 2025. Pricing model for Microsoft 365 Archive
- Reactivation Time (7 days): Microsoft Learn, 2025. Frequently asked questions about Microsoft 365 Archive
