Microsoft Message ID: MC1215074 – 2026-02-04 | (Updated) SharePoint Embedded apps can now archive containers to reduce storage costs and improve Copilot results

Microsoft 365 Update

💡 Our Technical Review in summary

Summary

  • This update introduces archival capabilities for SharePoint Embedded applications, allowing organizations to move inactive or large containers to a lower-cost storage tier.
  • Key benefits include a reduction in storage costs by up to 75% and improved Microsoft 365 Copilot performance by reducing search “noise” from outdated or inactive data.
  • The feature is rolling out in Public Preview starting early February 2026, with full completion expected by mid-March 2026.

Impact

  • Storage Optimization: Admins can significantly lower costs by archiving data that is no longer frequently accessed but must be retained.
  • Copilot Relevance: By moving inactive data to the archive tier, Copilot search results will prioritize active, relevant content.
  • Administrative Control: New options will appear in the SharePoint Admin Center to manage (archive/reactivate) containers manually.
  • Developer Integration: New Graph APIs will allow developers to automate the archival and reactivation workflows within their custom SharePoint Embedded applications.
  • Default State: This feature is OFF by default and requires administrative action to enable.

Action Required

  • Enable via PowerShell: To use this feature, you must opt-in at the Container Type level using the SharePoint Online Management Shell.
    • For new container types: Use New-SPOContainerType -IsArchiveEnabled $true.
    • For existing container types: Use Set-SPOContainerType -IsArchiveEnabled $true.
  • App Development Update: Coordinate with your development team to ensure custom applications can handle the “archived” status and display appropriate notifications to users when content is read-only.
  • UI Adjustments: Determine if your custom application should expose archive/reactivate buttons to end-users or if archival will be managed strictly by IT admins.
  • Documentation Review: Review the updated Microsoft Graph API documentation for the new archival endpoints to integrate these functions into existing automation scripts.

Microsoft Official Update

Service: N/A
Category: stayInformed
Severity: normal


Updated February 4, 2026: We have updated the timeline. Thank you for your patience. 

[Introduction]

Non-Microsoft SharePoint Embedded applications now support container archival. This feature helps organizations reduce storage costs by up to 75% by moving large or inactive content to low-cost storage tiers. It also improves Copilot search relevance by prioritizing active content and reducing noise from outdated data.

[When this will happen:]

  • Public Preview: Rollout will begin in early February 2026 and is expected to complete by mid-March 2026 (previously late February).

[How this affects your organization:]

Who is affected: Admins managing SharePoint Embedded applications and developers integrating with SharePoint Embedded APIs.

What will happen:

  • New Graph APIs will be available to archive and unarchive containers, enabling integration with your application workflows.
  • user settings

  • SharePoint Admin Center will include options to archive and reactivate containers alongside existing container management capabilities.
  • Archival support is OFF by default. To enable this functionality, you must opt in using a PowerShell cmdlet.

[What you can do to prepare:]

[Compliance considerations:]

No compliance considerations identified, review as appropriate for your organization.