Are You Running Out of Dataverse Storage? Here’s What You Need to Know
In today’s cloud-driven business environment, Microsoft Dataverse powers Power Apps, Power Automate, and Dynamics 365 by providing a secure and scalable data platform. One of the most critical aspects of managing Dataverse is understanding capacity-based storage.
This blog will walk you through what capacity-based storage is, why it exists, its components, and how it impacts your Power Platform environment.
What Is Capacity-Based Storage in Dataverse?
Capacity-based storage is the storage model used by Dataverse to manage data in the Power Platform.
Unlike the traditional per-environment storage model, capacity is:
- Allocated at the tenant level
- Shared across all environments
- Divided into three storage types for optimized performance and cost
Storage Categories in Dataverse
Why Microsoft Uses Capacity-Based Storage ?
Old Model: Per-Environment Storage
Before 2019, Dataverse (then Common Data Service) used environment-based storage:
- Each environment had a fixed database size
- Adding storage required per-environment purchase
- Unused storage in one environment could not be shared
Problems:
- Inefficient: Many tenants had underutilized storage
- Rigid Scaling: High-growth apps required separate storage purchases
- Complex Licensing: Separate capacity management per environment
New Model: Capacity-Based Storage
Microsoft shifted to capacity-based storage to simplify and optimize:
- Storage is pooled at the tenant level
- Divided into Database, File, and Log categories
- Automatically allocated to any environment that needs it
Reasons Behind the Shift
Optimize Utilization
- Shared pool ensures unused storage in one environment can support another environment
- Reduces waste and maximizes cost efficiency
Simplify Administration
- Centralized Power Platform Admin Center (PPAC) for all storage monitoring
- Easier governance and reporting
- Predictable billing model for admins and architects
Enable Cloud-First Scaling
- Capacity-based storage aligns with Azure’s elastic architecture
- Microsoft can scale SQL and file storage automatically for tenants
- Supports modern, multi-environment Power Platform strategies
Align Cost to Consumption
- Pay for what you use instead of buying fixed blocks
- Licenses automatically add base storage capacity
- Option to purchase extra storage add-ons only when required
Support Modern App Architecture
Power Platform apps now often require:
- Multiple environments for Dev, Test, Prod
- Dynamic scaling for high-volume apps
- Cross-environment data integration
- Capacity-based model supports flexible cloud-native deployments
Benefits to Customers
- Lower total cost of ownership (TCO)
- Easier scaling for growing apps
- Simplified governance and monitoring
- No “stranded storage” in unused environments
How Storage Is Allocated ?
Storage Allocation in Dataverse
- Dataverse storage is allocated at the tenant level, not per environment.
- Microsoft divides capacity into three categories for optimized management:
Default Base Storage Per Tenant
Each Power Platform tenant automatically gets base storage:
- Database: 1 GB
- File: 400 MB
- Log: 2 GB
Storage Expansion Through Licensing
- Storage increases automatically as you add Power Platform or Dynamics 365 licenses:
- Power Apps per-user / per-app plans → Add database capacity
- Dynamics 365 apps (Sales, Service, Field Service) → Add database + file + log capacity
- Add-on Storage → Can be purchased per GB for any category (Database, File, or Log)
How Allocation Works Across Environments
All environments share the same tenant storage pool
Capacity is consumed when you create:
- Database tables and records → Database Storage
- Attachments, images, and files → File Storage
- Audit logs and plug-in logs → Log Storage
Example:
Tenant has 10 GB Database capacity
Environment A uses 6 GBEnvironment B uses 4 GBBoth draw from the same 10 GB pool
How to Monitor Storage Allocation
Power Platform Admin Center (PPAC) → Resources > Capacity
Provides:
- Per-category usage (Database, File, Log)
- Per-environment usage
- Trend monitoring for planning add-ons
Dataverse capacity-based storage and Cloud SQL Server (Azure SQL) are related conceptually because Dataverse is built on top of Azure SQL, but they operate differently. Here’s a clear breakdown:
Underlying Technology
Dataverse Database Storage
- Internally uses Azure SQL Database for relational table data (Accounts, Contacts, Orders, etc.).
- Microsoft abstracts the SQL layer; customers cannot directly access SQL tables.
Cloud SQL (Azure SQL Database)
- Fully managed SQL database where you manage schema, tables, queries, indexes.
- You have direct T-SQL access.
Managing Dataverse Capacity-Based Storage effectively requires a collaborative approach between architects and developers to ensure performance, cost efficiency, and compliance.
Here’s a detailed guide for both roles:
Responsibilities of an Architect
An architect focuses on planning, governance, and optimization for storage:
Capacity Planning
Monitor capacity in Power Platform Admin Center (PPAC) → Resources > Capacity
- Understand Database, File, and Log storage consumption per environment
- Forecast growth and plan license or add-on requirements
Optimize Storage Usage
- Move attachments, media, and images to SharePoint or Azure Blob instead of Dataverse File storage
- Use Azure Synapse Link or Data Export Service to offload historical data
- Implement Data Archival Policies to keep active tables lightweight
Governance and Compliance
- Audit retention policies: Keep logs only for required duration (e.g., 90–180 days)
- Environment strategy: Separate Dev, Test, and Prod to monitor usage efficiently
- Automated alerts for approaching capacity limits
Licensing and Cost Management
- Track storage per license type (Power Apps / Dynamics 365)
- Purchase add-on storage only when necessary
- Educate teams to prevent unnecessary attachment storage in Dataverse
Responsibilities of a Developer
A developer focuses on implementation and app-level storage optimization:
App and Data Design
- Design lean tables with only required columns
- Use Choice columns or Lookups instead of duplicate text fields to save space
- Avoid storing large attachments in Dataverse directly
Optimize Storage in Apps
- Use Power Fx and Power Automate to move attachments to SharePoint or Blob Storage
- Archive old records with a flow to Azure SQL / Data Lake periodically
- Minimize audit-enabled tables to reduce Log storage
Monitor and Debug
- Track storage growth trends for apps using Dataverse analytics
- Clean up sample/demo data in Dev and Test environments
- Use bulk delete jobs for old/unneeded records
Summary:
Dataverse capacity-based storage is a flexible, cost-efficient model that powers the Microsoft Power Platform. By understanding its components and implementing governance strategies, organizations can optimize storage usage, reduce costs, and maintain high performance across environments.
Pro Tip for Architects:
Always design for storage efficiency from the start—move large files out of Dataverse, enable retention policies, and monitor usage trends to avoid unexpected overage costs.
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