MC1217996 – More users will be able to create Loop workspaces

Product:

Copilot, Entra, Exchange, Microsoft 365 Apps, Microsoft 365 Copilot, Microsoft 365 for the web, Microsoft 365 suite, Microsoft Loop, OneDrive, SharePoint

Platform:

Online, Web, World tenant

Status:

Scheduled

Change type:

Feature update, User impact, Admin impact

Links:

(MC1184645)

Details:

Summary:
Starting mid-February 2026, all Entra ID users with OneDrive or SharePoint storage can create Microsoft Loop workspaces unless blocked by Cloud Policy. This change affects all Microsoft 365 tenants, simplifying permissions. No action is required, but reviewing Cloud Policy settings and updating documentation is recommended.

Details:
[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.

Change Category:
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Scope:
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Release Phase:

Created:
2026-01-15

updated:
2026-01-15

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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linked item details

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summary for non-techies**

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Direct effects for Operations**

Increased User Access to Loop Workspaces
More users will be able to create Loop workspaces, potentially leading to unregulated workspace creation and management.
   - roles: End Users, IT Support Staff
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-admin-configuration?view=o365-worldwide

Cloud Policy Management
Organizations may face challenges in managing Cloud Policy settings, leading to unauthorized workspace creation if not reviewed.
   - roles: IT Administrators, Compliance Officers
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-compliance-summary?view=o365-worldwide

Documentation and Training Gaps
Internal documentation may become outdated, leading to confusion among users regarding Loop workspace capabilities.
   - roles: Training Coordinators, Help Desk Staff
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-admin-configuration?view=o365-worldwide

Data Lifecycle Management Challenges
Loop workspaces may require specific data lifecycle management workflows, which could be overlooked, risking compliance issues.
   - roles: Data Governance Officers, IT Compliance Managers
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-compliance-summary?view=o365-worldwide

User Experience Variability
Users with different Microsoft 365 plans may experience inconsistent capabilities, leading to frustration and support requests.
   - roles: End Users, IT Support Staff
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-admin-configuration?view=o365-worldwide

Configutation Options**

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Opportunities**

Enhanced Collaboration and User Experience
With the ability for all Entra ID users with OneDrive or SharePoint storage to create Loop workspaces, teams can collaborate more effectively. This change simplifies the process of workspace creation, enabling users to focus on productivity rather than permissions.
   - next-steps: Communicate the new capabilities to all users and provide training on how to effectively utilize Loop workspaces for collaboration.
   - roles: Project Managers, Team Leaders, Collaborative Teams
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-admin-configuration?view=o365-worldwide

Improved Cloud Policy Management
Organizations can streamline their Cloud Policy settings to ensure that only specific users are blocked from creating Loop workspaces. This can lead to better governance and compliance while reducing administrative overhead.
   - next-steps: Review current Cloud Policy settings and adjust them as necessary to align with the new permissions structure. Document any changes made for future reference.
   - roles: IT Administrators, Compliance Officers
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-compliance-summary?view=o365-worldwide

Documentation and Support Optimization
Updating internal documentation related to Loop usage will help users understand the new capabilities and best practices, enhancing overall user experience and reducing support queries.
   - next-steps: Create or update user guides and FAQs regarding Loop workspace creation and management. Ensure that help desk staff are briefed on the changes to assist users effectively.
   - roles: Support Staff, Training Coordinators
   - references: https://learn.microsoft.com/microsoft-365/loop/loop-admin-configuration?view=o365-worldwide

Potentional Risks**

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Data Protection**

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IT Security**

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Hypothetical Work Council Statement**

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DPIA Draft**

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explanation for non-techies**

Starting in mid-February 2026, a change will allow more users to create Microsoft Loop workspaces. Imagine Loop workspaces as virtual meeting rooms where people can collaborate on projects. Previously, only certain users with specific permissions could create these rooms. Now, if you have OneDrive or SharePoint storage, you can create these workspaces unless your organization has a policy blocking it.

Think of it like having a key to a shared office space. Before, only certain people had keys, but now, as long as you have a storage locker (OneDrive or SharePoint), you get a key too. However, if your company decides you shouldn't have access, they can still take away your key using a policy.

For those already with access through specific Microsoft 365 licenses, nothing changes. It's like already having a membership to a club; you continue to enjoy the same benefits. For users without OneDrive or SharePoint, it's like not having a locker, so you still can't get a key to the workspace.

Organizations should review their policies to ensure only the right people can create these workspaces. It's similar to a company deciding who should have access to certain areas of an office building. This change doesn't require any immediate action, but it's wise to update any internal guidelines and inform your support teams about the new access rules.

In summary, this update makes it easier for more people to collaborate using Loop workspaces, provided they have the necessary storage and aren't restricted by company policies.