Microsoft OneDrive: Exclude specific folders from syncing

Microsoft OneDrive will allow administrators to exclude specific folders (e.g., node_modules, PowerShell modules) from syncing, keeping them local to devices. This feature, off by default, rolls out worldwide in August 2026, improves storage efficiency, and is managed via Group Policy with no user control over exclusions. What and Why: Microsoft is introducing a new OneDrive capability that allows organizations to exclude specific folders from syncing to OneDrive. This helps ensure machine-specific or development-related folders—such as PowerShell modules, Visual Studio configuration folders, and node_modules—remain local to the device instead of being uploaded to the cloud. This enhancement improves manageability and storage efficiency by giving administrators granular control over which folders can be synchronized. It supports enterprise-ready management scenarios by helping organizations prevent unnecessary or device-specific content from consuming cloud storage while maintaining a consistent OneDrive experience for users. This message is associated with Roadmap ID 567470. Rollout Schedule: General Availability (Worldwide): We will begin rolling out in mid-August 2026 and expect to complete by late August 2026. Impact on Your Organization: Who is affected: Organizations using OneDrive for Windows and Mac OneDrive administrators managing sync policies Users storing development or machine-specific folders within OneDrive-managed locations Platforms/Services: OneDrive for Windows OneDrive for Mac OneDrive Sync Client Group Policy What will happen: The feature is OFF by default. No changes occur unless administrators configure exclusion rules. Administrators can define folder names or path patterns that should not sync to OneDrive. Folders matching configured rules remain on the local device and are not uploaded to OneDrive. Contents of excluded folders are also excluded from synchronization. Existing folders already synchronized before a rule is applied continue syncing until the user moves them out of OneDrive and then back into a synchronized location. Local files moved into an excluded folder after policy enforcement will remain local and will be excluded from syncing to OneDrive cloud storage. Moving files that are already syncing into an excluded folder is currently not supported. OneDrive must be restarted after policy changes for updated rules to take effect. Common use cases include excluding: node_modules PowerShell module directories Visual Studio configuration folders […]

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