💡 Our Technical Review in summary
Summary
Microsoft is expanding the ability to create Loop workspaces to a broader range of Entra ID users. Starting in mid-February 2026, any user with a OneDrive or SharePoint storage allocation will be permitted to create Loop workspaces by default, unless an administrative block is applied via Cloud Policy. This update aims to align workspace creation permissions with existing permissions for Loop components and pages, creating a more consistent user experience across the Microsoft 365 ecosystem.
Impact
- Expanded User Access: Users assigned to licenses such as Office 365 E1/E3/E5 and Microsoft 365 F1/F3 will now have the ability to create Loop workspaces.
- Licensing Change: The “Microsoft Loop service plan” toggle within the Microsoft 365 Admin Center will no longer serve as the primary control for workspace creation.
- Policy Consolidation: Workspace creation is now governed exclusively by Cloud Policy. Users currently blocked via the “Create Loop workspaces in Loop” policy will remain blocked.
- Storage Dependency: Users without dedicated OneDrive or SharePoint storage (e.g., those on Exchange Online Plan 1 or 2) remain ineligible to create workspaces as there is no backend storage location for the data.
- No Impact Groups: Users with Microsoft 365 E3/E5/A3/A5, Business Standard/Premium, or Copilot licenses will see no change, as they already possess these permissions.
Action Required
- Audit Cloud Policies: Review your organization’s settings in the Microsoft 365 Cloud Policy service. Ensure the policy “Create Loop workspaces in Loop” is set to “Disabled” for any specific user groups who should not have this capability.
- Update Governance Strategies: Because more users will have the ability to generate workspaces, review your data lifecycle and compliance policies to ensure they account for the potential increase in Loop data.
- Verify Storage Provisioning: Confirm that users intended to use Loop have OneDrive/SharePoint correctly provisioned, as this remains a technical prerequisite.
- Internal Documentation: Update your organization’s internal knowledge base and support documentation to reflect the expanded availability.
- Help Desk Briefing: Inform support staff that license-level service plan toggles are no longer the mechanism for controlling workspace creation, and they should instead refer to Cloud Policy settings.
Microsoft Official Update
Service: N/A
Category: planForChange
Severity: normal
[Introduction]
We are updating Microsoft Loop so that any Entra ID user with OneDrive or SharePoint storage will be able to create Loop workspaces, unless blocked by Cloud Policy. This change aligns workspace creation permissions with existing permissions to create Loop components and pages, simplifying the overall experience.
[When this will happen]
General Availability (Worldwide): We will begin and complete rollout in mid-February 2026.
[How this affects your organization]
Who is affected:
This change applies to all Microsoft 365 tenants.
What will happen:
- Users blocked by Cloud Policy (“Create Loop workspaces in Loop” = Disabled): These users will continue to be unable to create Loop workspaces. Cloud Policy will remain the only method to prevent workspace creation.
- Users with Microsoft 365 E3/E5/A3/A5, Business Standard, Business Premium, or Microsoft 365 Copilot licenses: No change. These users can already create Loop workspaces.
- Users without OneDrive or SharePoint storage (for example, Exchange Online Plan 1 or Plan 2): No change. These users still cannot create Loop workspaces because they have no storage location.
- All other users (for example, Office 365 E1/E3/E5, Microsoft 365 F1/F3): These users will be able to create Loop workspaces. This message replaces MC1184645.
[What you can do to prepare]
No action is required. However, you may want to:
- Review your organization’s Cloud Policy settings to ensure that users who should not create Loop workspaces have the “Create Loop workspaces in Loop” policy disabled.
- Note that assigning or removing the Microsoft Loop service plan will no longer control workspace creation.
- Communicate this change to your help desk or support staff.
- Update internal documentation related to Loop usage.
Learn more:
- Admin policies for Loop components and Loop workspaces | Microsoft 365 | Microsoft Learn
- Summary of governance, lifecycle, and compliance capabilities for Loop | Microsoft 365 | Microsoft Learn
[Compliance considerations]
Loop workspaces may require data lifecycle management workflows. Review the Summary of governance, lifecycle, and compliance capabilities for Loop to confirm your policies meet your organization’s needs.
