MC1217152 – Tenant setting update: Copilot capacity designation enabled by default

Product:

Copilot, Fabric, Power BI

Platform:

Online, World tenant

Status:

Change type:

User impact, Admin impact

Links:

Details:

Summary:
Starting February 12, 2026, the tenant setting "Capacities can be designated as Fabric Copilot capacities" will be enabled by default for all tenants. Existing capacity configurations remain unchanged. Tenants can opt out before rollout by toggling the setting on then off in the Fabric admin portal.

Details:
[Introduction]
We're updating the default behavior of the tenant setting Capacities can be designated as Fabric Copilot capacities. Beginning on or after February 12, 2026, this setting will be enabled by default for all tenants.
This update affects only the tenant setting itself. It will not modify an existing capacity configuration. If your organization has not enabled any capacities for Fabric Copilot, this default change will have no impact on your current setup.
[When this will happen]
This change will begin rolling out on or after February 12, 2026.

Change Category:
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Scope:
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Release Phase:

Created:
2026-01-13

updated:
2026-01-13

Task Type

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Docu to Check

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MS How does it affect me

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MS Preperations

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MS Urgency

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MS workload name

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summary for non-techies**

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Direct effects for Operations**

Default Setting Change
The tenant setting for Copilot capacities will be enabled by default, potentially leading to unintended usage of resources if not properly managed.
   - roles: Fabric capacity admins, IT operations managers
   - references: https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities

User Experience Disruption
Users may experience changes in functionality or access to features they were not prepared for, leading to confusion or decreased productivity.
   - roles: End users, Data analysts
   - references: https://learn.microsoft.com/fabric/enterprise/fabric-copilot-capacity

Resource Allocation Issues
Automatic enabling of Copilot capacities may lead to unexpected resource allocation, affecting performance and availability of other services.
   - roles: Fabric capacity admins, IT operations managers
   - references: https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities

Increased Support Requests
With the change in default settings, there may be an increase in support requests from users unfamiliar with the new capabilities.
   - roles: Helpdesk support, IT operations managers
   - references: https://learn.microsoft.com/fabric/enterprise/fabric-copilot-capacity

Compliance and Governance Risks
While no compliance considerations are identified, enabling new features without preparation may lead to governance issues if not monitored.
   - roles: Compliance officers, IT governance managers
   - references: https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities

Configutation Options**

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Opportunities**

Enhanced User Experience with Copilot Features
With the default enabling of Copilot capacities, users can leverage advanced AI features for data analysis and reporting without needing to configure settings manually. This can lead to more intuitive and efficient use of Power BI, enhancing overall productivity.
   - next-steps: Conduct training sessions for users to familiarize them with the new Copilot features and how to utilize them effectively in their workflows.
   - roles: Data Analysts, Business Intelligence Managers, IT Support Teams
   - references: https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities, https://learn.microsoft.com/fabric/enterprise/fabric-copilot-capacity

Streamlined IT Administration
By having the Copilot capacity designation enabled by default, IT administrators can reduce the time spent on configuration and management of settings, allowing them to focus on more strategic initiatives and support.
   - next-steps: Review current administrative processes to identify areas where time savings can be realized and reallocate resources to other IT projects.
   - roles: IT Administrators, Operations Managers
   - references: https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities

Proactive Capacity Management
The ability to opt-out of the default setting allows organizations to strategically plan their adoption of Copilot features, ensuring that they align with their operational needs and capacity management strategies.
   - next-steps: Assess current capacity usage and determine if opting out is necessary for your organization. If so, follow the outlined steps to opt-out before the rollout.
   - roles: Capacity Managers, IT Strategy Planners
   - references: https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/fabric/admin/service-admin-portal-copilot#capacities-can-be-designated-as-fabric-copilot-capacities

Potentional Risks**

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IT Security**

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explanation for non-techies**

Starting February 12, 2026, a new default setting will be introduced for Microsoft Fabric users. This setting, called "Capacities can be designated as Fabric Copilot capacities," will be automatically enabled for all users, known as tenants. Think of this like a new feature in your smartphone's operating system that gets turned on automatically with an update, but doesn't change any of your current apps or settings unless you decide to use it.

For those managing Fabric capacities, this means you'll see this setting turned on in your admin portal. However, if your organization hasn't been using Fabric Copilot capacities, this change won't affect your current setup. It's like getting a new app on your phone that you haven't opened yet—it’s there, but it doesn’t change anything until you decide to use it.

If your organization prefers not to have this setting turned on automatically, you can opt out before the change takes effect. To do this, you simply toggle the setting on and then off in the Fabric admin portal. This action is like telling your phone that you don’t want a new feature activated just yet, even though it’s available.

No compliance issues have been identified with this change, but it’s always a good idea to review any updates to ensure they align with your organization's policies. If you want more detailed information, Microsoft provides resources online to help you understand how this setting works and what it means for your organization.