MC1325441 – Microsoft Purview | Data Lifecycle Management – Archive OneDrive and SharePoint files under retention

Product:

Copilot, eDiscovery, OneDrive, Purview, Purview Communication Compliance, SharePoint

Platform:

Online, Web, World tenant

Status:

In development

Change type:

New feature, User impact, Admin impact

Links:

561208

Details:

Summary:
Microsoft Purview Data Lifecycle Management will enable archiving OneDrive and SharePoint files under retention policies to reduce storage costs by moving inactive content to Microsoft 365 Archive. Archived files remain compliant and discoverable but are excluded from Copilot indexing. The feature requires admin setup and rolls out worldwide from late June to mid-July 2026.

Details:
[What and Why]
Microsoft Purview Data Lifecycle Management is introducing the ability to archive OneDrive and SharePoint files based on retention policies. This feature helps organizations reduce storage costs by moving inactive content to Microsoft 365 Archive while maintaining compliance and discoverability. By excluding archived content from Copilot indexing, organizations can also improve the relevance and quality of Copilot responses, ensuring users focus on current, active data.
This message is associated with Microsoft 365 Roadmap ID 561208.
[Rollout Schedule]
General Availability (Worldwide): Rollout will begin in late June 2026 and is expected to complete by mid-July 2026.
[Impact on Your Organization]
Who is affected
Admins managing Microsoft Purview Data Lifecycle Management
Organizations using retention policies in SharePoint Online and OneDrive
Platforms/ServicesPlatforms/Services
Microsoft Purview (Data Lifecycle Management)
SharePoint Online
OneDrive for Business
Microsoft 365 Archive
Microsoft Copilot
What will happen
A new Archive option will be available within retention policy settings in Data Lifecycle Management.
Admins can configure retention policies to move inactive files to Microsoft 365 Archive storage.
Archived files remain available for compliance scenarios, including eDiscovery.
Archived content will be excluded from Copilot indexing, helping improve answer relevance.
This feature is not enabled by default and requires admin configuration.
Existing retention policies and compliance configurations remain unchanged unless updated by admins.

[Action Required / Recommendations]
No immediate action is required.
To prepare and take advantage of this feature:
Review your current retention policies in Microsoft Purview Data Lifecycle Management.
Evaluate opportunities to reduce storage costs by archiving inactive content.
Update retention policies to include the new Archive option where appropriate.
Inform compliance and records management stakeholders about this new capability.
Review internal documentation and processes related to data lifecycle and storage optimization.
[Compliance Considerations]
QuestionAnswer
Does the change store new customer data?Yes. Archived files are stored in Microsoft 365 Archive (low-cost storage tier).
Does the change alter how existing customer data is processed, stored, or accessed?Yes. Files meeting retention criteria can be moved from active storage to archive storage while remaining discoverable.
Does the change introduce or modify AI/ML capabilities interacting with data?Yes. Archived content is excluded from Copilot indexing, influencing how Copilot processes and retrieves organizational data.
Does the change modify Purview retention policies or workflows?Yes. Adds a new Archive action within retention policy configuration in Data Lifecycle Management.
Does the change affect eDiscovery or Content Search?Yes. Archived content remains discoverable for compliance workflows such as eDiscovery.
Does the change include an admin control?Yes. Admins configure and enable the feature through retention policy settings in Purview.

Change Category:
XXXXXXX ... free basic plan only

Scope:
XXXXXXX ... free basic plan only

Release Phase:
General Availability

Created:
2026-05-29

updated:
2026-05-29

Task Type

XXXXXXX ... free basic plan only

Docu to Check

XXXXXXX ... free basic plan only

MS Preperations

XXXXXXX ... free basic plan only

MS Urgency

XXXXXXX ... free basic plan only

MS workload name

XXXXXXX ... free basic plan only

linked item details

XXXXXXX ... free basic plan only

Pictures

XXXXXXX ... free basic plan only

summary for non-techies**

XXXXXXX ... free basic plan only

Direct effects for Operations**

Archiving Impact on User Experience
Users may experience delays in accessing archived files as they are moved to lower-cost storage, potentially leading to frustration when searching for inactive content.
   - roles: End Users, Compliance Officers
   - references: https://www.microsoft.com/microsoft-365/roadmap?filters=&searchterms=561208

Copilot Indexing Exclusion
Archived files will not be indexed by Copilot, which may result in incomplete or less relevant responses for users relying on Copilot for information retrieval.
   - roles: End Users, Data Analysts
   - references: https://www.microsoft.com/microsoft-365/roadmap?filters=&searchterms=561208

Admin Configuration Requirement
Admins must configure the new archiving feature, which may lead to operational delays if not prepared, impacting the overall efficiency of data management.
   - roles: IT Administrators, Data Governance Managers
   - references: https://www.microsoft.com/microsoft-365/roadmap?filters=&searchterms=561208

Configutation Options**

XXXXXXX ... paid membership only

Opportunities**

XXXXXXX ... free basic plan only

Potentional Risks**

XXXXXXX ... paid membership only

Data Protection**

XXXXXXX ... paid membership only

IT Security**

XXXXXXX ... paid membership only

Hypothetical Work Council Statement**

XXXXXXX ... paid membership only

DPIA Draft**

XXXXXXX ... paid membership only

explanation for non-techies**

XXXXXXX ... free basic plan only