
Today, effective document management is crucial in the digital workplace. SharePoint offers strong file versioning capabilities that ensure every edit and update is recorded, creating a comprehensive version history. This feature not only facilitates seamless collaboration but also acts as a safeguard against accidental deletions or alterations. By maintaining a detailed version history, SharePoint upholds document integrity and ensures compliance with regulatory standards.
Many organizations are approaching their SharePoint storage limits and are asking the question: “Do I really need to buy more SharePoint storage, or is there a better way?”
So how does SharePoint File Versioning impact your storage management? In this post, we’ll explore the relationship between SharePoint file versioning and storage and provide tips to optimize your SharePoint environment.
Introduction to SharePoint File Versioning
SharePoint’s file versioning system offers a comprehensive safety mechanism for document management. It is an integral feature of SharePoint Online and OneDrive for Business, designed to automatically create a new version each time a document is edited, or its properties are altered. This functionality is crucial for collaborative document management, ensuring a detailed historical log of modifications is maintained. This log includes timestamps and identifies the individuals responsible for each change.
The primary benefits of this system are:
- The ability to track the entire history of a document’s changes.
- The option to restore any previous document version in case of accidental deletion or unwanted edits.
- The facility to view earlier versions of a document.
- The capability to delete any obsolete or unnecessary version.
- The application of retention policies to each version, ensuring compliance with data management regulations.
By default, the system records every change as a major version, providing a clear and structured version history. However, administrators have the flexibility to enable minor versions. These minor versions serve as interim drafts and can be particularly useful in scenarios where only major, approved versions are to be made visible to all users, while minor, in-progress versions are limited to a select group of editors. This dual-versioning approach allows for a more controlled and staged document publishing process, which can be essential in maintaining document integrity and control.
How does SharePoint File Versioning Work?
Here’s a detailed breakdown of how it works, empowering you with the knowledge to make informed decisions:
- Version Creation: With each edit or update, SharePoint creates a new version, including changes to the content or metadata.
- Automatic Versioning: By default, SharePoint Online and OneDrive for Business maintain a history of up to 500 versions for each document.
- Version Management: Administrators and site owners can configure versioning settings at the Document Library level or for individual files.
- Version Deletion: SharePoint automatically deletes the oldest version when a new one is created beyond the 500-version threshold.
This system is invaluable for collaboration, allowing team members to view and revert to previous versions, fostering a transparent and traceable collaborative environment. Additionally, in the event of accidental deletions or unwanted changes, the version history acts as a fail-safe, enabling the restoration of prior versions.
What is the User Experience for SharePoint File Versioning?
Users with the appropriate permissions can access the version history, compare different versions to identify changes and restore a document to a previous state if necessary. Viewing previous document versions is simple. Select the document from SharePoint Online or OneDrive and choose ‘Version History’ from the Actions menu. The Version History displays all the file versions, allowing you to view, restore, or delete versions, ensuring complete control over your document’s lifecycle.
The diagram below illustrates how file versioning works for a specific document. It shows the date and time of each version, the person who made the changes, and the file size of each version. This demonstrates that when collaborating on large files, you can quickly use up your site’s storage.

The user can then select a specific file and either view the file version, restore the file version or delete it.

If you need more details, follow this guide. View the version history of an item or file in a list or library – Microsoft Support.
Benefits of SharePoint File Versioning
When SharePoint File Versioning is enabled, it allows storing, tracking, and restoring items whenever changes occur. This functionality safeguards against accidental deletions or alterations and provides a comprehensive audit trail of changes made over time. Key benefits are:
- Accountability and Compliance: Enhances accountability by maintaining a historical record of changes, crucial for regulatory compliance and internal audits.
- Collaboration: Supports collaboration by allowing multiple users to work on a document simultaneously without fearing overwriting each other’s contributions.
- Safety Net for Human Errors: Increases efficiency by enabling quick recovery of previous versions, saving time that would otherwise be spent recreating lost work.
- Integrity and Traceability: Aids in maintaining the integrity of documents by tracking content and metadata changes, providing a clear picture of the document’s
The Impact of Retention and Holds on SharePoint File Versioning
⚠️Retention and eDiscovery Holds will impact the number of file versions and how much SharePoint storage is used.
Polices that delete data
SharePoint retention policies can be set up to delete files that are older than a certain date, which helps to efficiently manage storage space by removing old data. When retention is based on the file’s last modified date, each file version is deleted individually. However, if retention is based on the file’s creation date, all versions of the file are deleted at the same time. This feature is especially helpful for managing storage space and ensuring that only essential versions are kept.
Policies that retain data
SharePoint retention policies can be configured to preserve data. Even if the number of versions exceeds the library limits, the content will not be deleted, as the retention policies take precedence. The content can only be deleted once the retention policy expires or is removed. Similarly, when a file is under an eDiscovery hold, the file versions cannot be deleted, preserving the content in its current state for legal review and compliance purposes. The content can only be deleted once the hold is removed. This means that even if a file version is outdated or no longer needed, it is retained if it falls under a retention policy or eDiscovery hold. This can significantly impact storage consumption, particularly in the case of a lot of collaboration on large files.
Reference Learn about retention for SharePoint and OneDrive | Microsoft Learn
Will SharePoint File Versioning Increase SharePoint Storage?
Yes, file versioning in SharePoint does increase storage usage. Each file version is stored separately as a full version, meaning the storage space required increases with every new version created. For small text documents, this may not be a significant issue. However, storage can be quickly consumed for media files like videos or high-resolution images.
To put it simply, let’s say I’m working with my colleagues on a 200MB PowerPoint presentation. Each time we make edits or change the metadata, a full copy of the file is saved as a new version. If we have 10 versions, the storage consumption for our 200MB file jumps to 2GB. Now, extend this scenario to 500 similar 200MB files with 10 versions each, and suddenly we’ve used 1TB of storage.
To address this, SharePoint administrators can set limits on the number of versions retained. For instance, they might keep only the last 100 document versions. They can also implement retention policies to automatically delete older versions no longer needed, following organizational guidelines.
⚠️Remember, even if you reduce the number of file versions, if your content is subject to retention or eDiscovery holds, then the content is retained until the policy ends or the hold is removed.
How to configure SharePoint File Versioning?
File versioning is enabled by default in SharePoint Online and OneDrive for Business, allowing for version history. Each document library or list can store up to 500 versions of each document. However, if you are approaching your SharePoint limits or dealing with large media files, you may want to reduce the number of file versions for specific SharePoint sites. It’s important to note that the number of file versions cannot be set at the tenant level. Therefore, you will need to update the version settings for specific SharePoint Lists and Libraries.
💡Microsoft has announced a new preview feature that allows for organization-level limits and options for deleting older versions. I have written a detailed blog on how the new SharePoint Version History Limits can help you optimize your SharePoint storage.
Configure SharePoint File Versioning at the List and Library
If you’re approaching your SharePoint limits or dealing with large media files, you might want to think about decreasing the number of file versions for a specific SharePoint site. However, you need to balance user productivity with file storage. If users are regularly working together, then having only 50 versions may not be sufficient.
To adjust the file versioning, you will need to manually or programmatically update each Document Library or List in a SharePoint site.
Remember, if the content is under retention or eDiscovery holds, then the versions will not be deleted as expected because the retention and hold take priority.
Manually updating File version limits for a List and Library
To manually update the file version limits for a specific list or library as a site owner, follow these steps:
- Go to List Settings or Library Settings from the site.
- Then select More Library Settings and click on Versioning Settings.
- Here, you can choose the number of versions to retain and configure major and minor versioning options. Major versions typically represent published versions, while minor versions are used for drafts or interim changes.
Please note that the minimum number of versions you can set through the user interface is 100. However, an admin can use PowerShell to configure the File Version for a List and Library to less than 100.

Programmatically updating File version limits for a List and Library
If you have multiple sites, libraries, or lists, you will want to update the file version settings programmatically. This is much faster than manually updating each list or library. Additionally, you can set the number of versions to be less than 100.
Here’s an example of using PnP PowerShell to reduce the number of major versions to 20:
Set-PnPList -Identity $ListName -MajorVersions 20
Disabling SharePoint File Versioning at the List and Library Level
You can turn off SharePoint versioning for a Document Library or any other List, which means that only one version of the file will be retained. However, this is not recommended.
Before disabling File Versioning, there are a few important things to consider:
- Disabling versioning will prevent future versions from being created, which means that you will lose the ability to go back to previous versions in case of accidental or malicious changes.
- Disabling versioning does not remove previous versions of the file. This means it won’t help reduce your Site and tenant storage used.
- Disabling File Versioning will inhibit file collaboration, as co-authoring will be disabled with only one version of the file available.
Only an admin can disable File Version for a List and Library using PowerShell.
Here is an example of using PnP PowerShell to disable File Version for a List and Library.
Set-PnPList -Identity $ListName -EnableVersioning $False
When file versioning is disabled, the version history is greyed out when you view the file info.

Deleting Historic File Versions
As discussed earlier, you will lose the built-in resilience if you delete all historical versions. This will leave you with only the current version, making it impossible to revert to previous versions in case of accidental or malicious changes.
However, there may be some specific scenarios where you want to delete all or some historical versions. For example
- Freeing Up Storage Space: If your SharePoint storage is reaching its limit, deleting old versions can help free up space.
- Security and Privacy: Removing old versions can help protect sensitive information that might be contained in previous drafts.
Manually Deleting File Versions for a Specific File
A user or site owner can delete a specific file version from the File Version history.

They can also delete all historical file versions to retain only the current version. This action may be necessary for security and privacy reasons. However, it’s important to note that by doing this, you will lose the ability to revert to previous versions in case of accidental or malicious changes.

The deleted version(s) move into the recycle bin, which can be recovered for 93 days before permanent deletion.
Programmatically Deleting Historic File Versions
Furthermore, an administrator can use PowerShell to delete all historical file versions or a specific one. By default, when file versions are deleted programmatically, they bypass the recycle bin and are permanently deleted. However, there is an option to move the deleted file versions to the recycle bin. Remember, content in your recycle bin counts towards your storage limits.
Here is an example of using PnP PowerShell to delete all previous file versions.
Remove-PnPFileVersion -Url $FileRelativePath -All -Force
Here is an example of using PnP PowerShell to delete the historic version ‘Version 1.0’.
Remove-PnPFileVersion -Url $FileRelativePath -Identity "Version 1.0"
By default, the file is permanently deleted. However, you can use the -Recycle parameter to send the versions to the recycle bin. Here is an example of using PnP PowerShell to delete the historic version ‘Version 1.0’ and move it to the recycle bin.
Remove-PnPFileVersion -Url $FileRelativePath -Identity "Version 1.0" -Recycle
If the content you want to delete is subject to Purview retention policies or an eDiscovery hold. In that case, the file versions under retention or holds cannot be deleted, and an error message will be displayed.

View the PnP GitHub for complete details. Remove-PnPFileVersion | PnP PowerShell.
Check on your SharePoint storage usage
A SharePoint admin can view the tenant and site storage used in the SharePoint Admin center.

A Site owner can view Storage Metrics on their libraries. However this excludes data in the recycle bin.

The deleted data in the recycle bin remains in the recycle bin for 93 days and counts towards your SharePoint storage limits. Therefore, even if you are actively removing file versions, there may still be a significant amount of data in your recycle bin contributing to your site storage. The only way to get visibility in the storage is to programmatically view the data. For example Get-PnPTenantRecycleBinItem | PnP PowerShell or – Get-PnPRecycleBinItem | PnP PowerShell.
Best Practices for SharePoint File Versioning and Optimizing your SharePoint storage
In conclusion, SharePoint’s file versioning is a sophisticated tool designed to meet the challenges of modern document management. It provides a secure and efficient way to manage changes, collaborate In conclusion, SharePoint’s file versioning is a powerful tool for modern document management. It allows for secure and efficient handling of changes, collaboration on documents, and ensures the integrity and traceability of information within the SharePoint environment.
As an administrator, it’s important to understand how file versioning affects overall tenant storage, as well as the impact of retention and eDiscovery. Here are some best practices to keep in mind:
- Enable Versioning: Make sure to enable versioning for your document libraries and lists to facilitate collaboration. Without versioning, employees cannot collaborate effectively.
- Set Appropriate Version Limits: Based on the usage, limit the number of retained versions to manage storage effectively. A highly active site may require multiple versions, while an inactive site will need fewer.
- Understand the Impact of Retention Policies and Holds: Retention policies and eDiscovery holds will prevent file versions from being deleted, even if they exceed the set number of versions on the library.
- Monitor tenant and site storage limits: Keep an eye on sites nearing their storage limits to determine if reducing the number of file versions is necessary.
- Train Users: Educate users on using versioning features effectively, such as restoring previous versions and managing version settings.
- Train Admins: Ensure admins understand how file versioning, the recycle bin, and retention can impact storage limits.
💡Microsoft has recently announced Version History Limits (Preview), providing more detailed controls for file version limits in SharePoint and OneDrive. However, as this is a public preview, it is subject to change and licensing requirements are currently unknown. We’ll provide more information about this in a future blog post.
More Information on SharePoint File Versioning
Microsoft offers comprehensive guides and support for those looking to delve deeper into setting up and leveraging SharePoint versioning.
- How versioning works in lists and libraries – Microsoft Support
- Versioning in SharePoint | Microsoft Learn
- View the version history of an item or file in a list or library – Microsoft Support
- Version history limits for document library and OneDrive overview (Preview) – SharePoint in Microsoft 365 | Microsoft Learn