Dataverse for Teams is going away: what to keep, move or let go before September 2027
Microsoft is shutting down Dataverse for Teams. New environments stop on 15 November 2026, and any that aren't upgraded go dark on 15 September 2027. Here's how to find yours, what each option costs in licences and capacity, and the order we'd do it in.
part 1 of 5 · Running enterprise platforms wellthe ideaMost teams still have time to upgrade or move their apps. After September they don't.
after reading, you can- Find every Dataverse for Teams environment in your tenant and see which ones people still open
- Count the licences and storage an upgrade pulls in, so finance isn't surprised in September
- Decide upgrade, move or retire for each environment, then get it done before the suspension date
Microsoft is retiring Dataverse for TeamsdefinitionThe small database Teams sets up for a team the first time someone there builds an app or agent. You get one per team, and it stops at 2 GB., the little database behind apps, flows and agents that people built inside Microsoft Teams. Find every one of those environments now, decide which ones the business still needs, and upgrade or move those before 15 September 2027, when the rest stop working. Upgrading is a few clicks, but the licences and storage it pulls in are a budget line someone has to approve.
Apps your teams built inside Teams run on a small database Microsoft is switching off
Since 2020, people in Microsoft Teams could build a simple app, an approval flow or a chat agent without asking IT. Teams quietly set up a small database for that team to hold the data. Microsoft is closing that option. Nobody can start a new one from mid-November 2026, and the existing ones stop working in September 2027 unless an admin upgrades them to the full Power Platform database. The upgrade keeps everything, but the people using those apps then need paid Power Platform licences, and the data counts against storage your company pays for. Anything nobody upgrades or moves is gone a few weeks later.
It's like a free storage unit the building gave each team. The building is closing the units. You can move your boxes into the company's main warehouse, where space and keys cost money, or let the building clear them out. The team's own office, files and chats stay where they are.
- Microsoft 365 and Teams admins
- Power Platform admins
- Teams owners who built apps
- Finance and licensing owners
- Owners of Copilot Studio agents
- Small firms on Microsoft 365 only
Why it matters to you
These apps rarely show up on anyone's systems list. A team built a leave tracker, a site inspection form or an FAQ bot years ago, and people use it every week without knowing where the data lives. When the environment is suspended, the app simply stops opening. The data goes with it. Microsoft's notice says that after decommissioning the apps, flows, agents and data are no longer available.
The other cost is money. After an upgrade, everyone who uses those apps, flows and agents needs a Power Apps, Power Automate or Copilot Studio licence, and the environment's storage moves into your tenant's paid Dataverse capacitydefinitionHow much Dataverse storage your tenant has paid for, counted separately for database, file and log. Upgraded Teams environments start eating into it.. For a team of fifteen that might be a rounding error. For an app the whole company opens to book leave, it's a real budget line, and someone in finance will want to see it before September.
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01 Today: it just works
Nothing looks different yet. People open the app in a Teams tab, the flows run, and Microsoft 365 licences still cover the lot.
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02 15 Nov 2026: no new ones
From here, nobody can make a new Teams environment. Building a first app or agent in a team won't do it, and nor will installing a catalog app that needs one.
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03 Admin upgrades or moves it
Someone makes the call. An admin upgrades the environment in the admin center, or a maker exports the app and flows as a solution and imports them somewhere you already pay for.
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04 15 Sep 2027: suspended
Whatever is still on Dataverse for Teams gets suspended. People open the app and nothing loads, and the flows, agents and data are out of reach too.
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05 30 Oct 2027: decommissioned
Microsoft decommissions what's left. The team, its chats, channels, files and SharePoint site stay, but the apps and their data are gone.
Microsoft's upgrade deadline is 30 October, but users lose the apps on 15 September. Plan as if September is the real date. A failed upgrade in the last week of September leaves you explaining to a department why their app has been dark for a fortnight.
What Microsoft changed, and what it left alone
The retirement at a glance
From 15 November 2026 nobody can start a new one. That includes someone building their first app or agent in a team, or installing a catalog app that needs one. New work goes in a full Dataverse environment and gets added to Teams from there.
Leave one alone and it's suspended on 15 September 2027, then decommissioned six weeks later on 30 October. Someone has to upgrade it or move the work out before then.
Once you upgrade, the Microsoft 365 entitlement stops covering it. Anyone using the apps, flows and agents needs a Power Apps, Power Automate or Copilot Studio licence. Count those people before anyone clicks Upgrade.
The data moves out of the separate Teams storage pool and into your tenant's Dataverse capacity. If there isn't enough free, the upgrade won't start.
You get auditing, field-level security, record sharing, API access, plug-ins, model-driven apps and mobile offline, and the 2 GB ceiling goes away. The app can also run outside Teams, in a browser.
Today, deleting a team deletes its environment. Once upgraded, the environment survives the team being deleted, so you'll need an owner for it.
Agents keep running after an upgrade. The bill is what changes, because Microsoft counts qualifying sessions as billed from then on, even when the agent uses nothing premium.
You don't have to upgrade in place. Microsoft's notice also lets you export the apps, flows and tables as a solution and import them into a Dataverse environment you already have.
Microsoft's reason is consolidation. Dataverse for Teams was always a subset, and running two data platforms with different rules for storage, security and lifecycle is work for everyone. Apps built in a normal Dataverse environment can still be added to Teams, so users who only ever see the app as a tab in a channel may not notice anything changed, provided it's licensed and moved in time.
Plenty stays exactly as it is. Nobody touches the team, its channels, chats, files or SharePoint site. Apps, flows and agents someone already built in a full Dataverse environment and added to Teams aren't affected either. If that's all your inventory turns up, you're done.
How Dataverse for Teams got here
- Sep 2020Dataverse for Teams introduced
A built-in database for Teams, so people could build apps, flows and bots without a separate Power Platform licence.
- Oct 2026Deprecation listed
Microsoft's Important changes page spells out three phases, and the Power Platform admin docs have been updated with the same dates.
- 15 Nov 2026Creation ends
No new Teams environments from any route. Existing ones keep running.
- 15 Sep 2027Suspension
Environments that weren't upgraded stop serving their apps, flows, agents and data.
- 30 Oct 2027Decommission
Anything left is decommissioned. It's also Microsoft's last date for an upgrade, though users will have been locked out for six weeks by then.
Your options for each environment
Every Teams environment gets one of four answers. Most tenants end up using all four, because a busy approval app and a test someone abandoned in 2022 deserve different treatment.
| Option | What happens | Effort | Licences and storage | Pick it when |
|---|---|---|---|---|
| Upgrade in place | Admin clicks Upgrade in the admin center. Apps, flows, agents and data stay in the same environment. | Low on the day; most of the work is the licence and capacity check beforehand | Users need Power Platform licences; data counts toward tenant capacity | The app is busy, the data matters, and the team owns it |
| Move into an existing Dataverse environment | Export apps, flows and tables as a solution and import them elsewhere. Rows need their own plan. | Medium: test the import, re-create connections, move data | Same licences; data lands in an environment you already pay for | You want fewer environments, or the app belongs in a department environment |
| Rebuild somewhere else | Recreate the app on another platform the business already pays for. | High: it's new work | Depends on the target | The app is small, licences would cost more than a rebuild, or it needs redesign anyway |
| Let it go | Do nothing. It's suspended in September 2027 and decommissioned in October. | Export any data you must keep first | None | Nobody uses it, or the process it served has ended |
- Covered by select Microsoft 365 plans
- 2 GB per environment, separate storage pool
- Built for Teams; running it elsewhere needs a standalone Power Apps licence
- Nothing to show an auditor: no audit log, no field-level security, no record sharing
- Deleted when the team is deleted
- Agents are stuck on classic orchestration and nobody outside Teams can use them
- Everyone who uses it needs a Power Apps, Power Automate or Copilot Studio licence, so count them first
- Counts against your tenant's Dataverse capacity
- Apps run inside and outside Teams
- There's auditing, field-level security and record sharing if someone asks for them
- Stays put if the team is deleted, so someone has to own it
- Agents can be edited on the Copilot Studio website too, if the maker has a standalone or trial licence
Microsoft's public price list puts Power Apps Premium at $20 per user per month, paid yearly, or $12 with a 2,000-seat minimum, and extra Dataverse database capacity at $40 per GB per month. Each Premium licence comes with Dataverse entitlements of 250 MB database and 2 GB file. Your agreement may differ, so treat those as the starting point for the conversation with your licensing partner, then count the actual users of each app before you multiply anything.
Find what you have before you decide anything
Start in the Power Platform admin center. Under Manage, then Environments, filter the list where Type is Microsoft Teams. The Last activity column is updated daily and counts real use: someone opening an app, a flow running, a chat with an agent. A scheduled flow counts as activity on its own, so an environment can look alive while no human has touched it in a year.
Then ask the team owners. They get the inactivity warning emails and the System Administrator role in their environment, and they usually know which app matters. Members and guests don't get those emails. When the owners have left, the warnings go to tenant admins, who often have no idea what the app is.
# example: Windows PowerShell 5.x, admin module Install-Module -Name ` Microsoft.PowerApps.Administration.PowerShell ` -Scope CurrentUser Add-PowerAppsAccount # count apps per environment Get-AdminPowerApp | Select -ExpandProperty EnvironmentName | Group | Sort Count -Descending # every flow in the tenant, for the owner list Get-AdminFlow | Export-Csv -Path '.\FlowExport.csv' # example output Count Name 7 6f2c1e0a-... 1 a91d44b3-...
The admin module only runs on Windows PowerShell 5.x, not PowerShell 7. Match the environment IDs it returns against the Teams-type environments you filtered in the admin center, and you'll have a list with app and flow counts per team.
From inventory to a decision
- 01List every Teams-type environment
Note each environment's name, Last activity and the team behind it from the Environments list, and its size from Licensing, Capacity add-ons, Microsoft Teams tab. Then add your own columns for the owner, how many people really use it, what data you have to keep, and which option you'll pick.
- 02Sort by activity, then by size
Anything idle for months and unclaimed by an owner goes in the let-it-go pile, after you save any records you're required to keep. Anything active goes to the owner with a question: who uses this, and how often?
- 03Count licences per app
For each app you'll keep, list the people who actually open it. That number, times the licence price, is what finance needs to approve. It's often the reason a small app gets rebuilt instead.
- 04Check tenant capacity
Add up the size of everything you plan to upgrade and compare it with the free Dataverse capacity in the admin center. If it won't fit, buy capacity or move some apps into an existing environment first.
- 05Upgrade a low-risk environment first
Pick one with a single app and an owner who'll test it the same day. Check that the app opens in Teams, flows run and connections still work before you schedule the rest.
Before: each team has its own small database
Every team that built something got a Dataverse for Teams environment, covered by Microsoft 365 licences and limited to 2 GB. It lives and dies with the team.
After: upgraded, moved or retired
The busy inspection app is upgraded in place, the leave tracker moves into the HR department's existing Dataverse environment, and the unused FAQ agent is retired. Users of the kept apps carry Power Platform licences.
What to do now, by role
Who does what before September 2027
- Ask IT for the list of apps, flows and agents built inside Teams, and which departments use them.
- Pick one person to make the call on each app people still use, and make sure they know it's theirs.
- Put the licence and storage cost of the apps you're keeping into next year's budget, before finance closes it.
- Agree now that any app still without an owner by spring gets retired.
- Filter environments by Type Microsoft Teams, note Last activity, and get each one's size from the Capacity page's Microsoft Teams tab.
- Check free Dataverse capacity against the size of everything you'll upgrade.
- Upgrade one low-risk environment end to end before you schedule the rest.
- Make sure your data policy covers Teams environments now, and add each upgraded environment to the right policy once it's done.
- Tell your admin which of the team's apps people actually rely on, and roughly how many open them.
- Build anything new in a full Dataverse environment. Then use Add to Teams in Power Apps, and it shows up in the channel like before.
- Once it's upgraded, you'll edit apps in Power Apps and flows in Power Automate. Bookmark both before the day.
- If your app is being retired, pull out the records you're required to keep before 15 September 2027. Nobody can get at them after that.
- To stop creation now, block Power Apps, Copilot Studio and the sample apps in app permission policies. Blocking only the first two leaves a gap.
- Make sure custom app upload is allowed. Otherwise makers can't add their rebuilt apps to Teams and will come asking.
- Warn users before each upgrade, because chats with agents can fail while it runs.
Set it up so the next retirement hurts less
Durable fixes
- 01Give every upgraded environment an owner
Once upgraded, the environment no longer disappears with its team. Team owners become System Administrators, which isn't the same as someone being responsible. Write a name and a review date against each one.
- 02Build new work in governed environments
Ask makers to build new apps and agents in a department or shared Dataverse environment and add them to Teams from there. That way IT knows they exist from day one, and the data policy already applies.
- 03Keep apps in solutions
An app inside a solution can be exported, imported and moved between environments. Ad-hoc apps tend to get rebuilt by hand the next time Microsoft changes something.
- 04Watch Last activity every month
The inactivity cleanup covers other environment types too. Look at Last activity once a month and you'll catch the seasonal app before it's disabled, and the dead ones you can stop paying for.
- 05Read the Important changes page each quarter
Microsoft lists upcoming Power Platform deprecations there with their dates. Someone who reads it each quarter sees the next retirement while there's still a full budget cycle to plan it.
If it goes wrong
When the upgrade goes wrong, or the app has already gone dark
Most problems here are capacity, licences or timing. The order below gets the app back first and then fixes the cause.
- 01Containfirst hour
- Look the environment up in the admin center and write down its state: disabled, deleted, suspended or halfway through an upgrade.
- If it was disabled for inactivity, re-enable it. If it was deleted, recover it; you have seven days.
- Let the team know which app is down and roughly when they'll have it back, so nobody starts a workaround.
- 02Fix the blockersame day
- If it's a capacity error, free up space in other environments, buy more, or move this app somewhere with room.
- People can't open the app after the upgrade? Check licences first. Each of them needs Power Apps or Power Automate now.
- Agent won't open in the Copilot Studio web app: that needs a standalone or trial licence; it still edits in Teams.
- 03Check the appfirst day
- Open the app in Teams and in a browser, and run each flow once with a test record.
- Re-create each connection the upgrade or import asked for, and put it under a named account that won't leave with a person.
- Count rows in the main tables and check the totals with the team before you call it done.
- 04Recover datathis week
- If rows have gone missing, restore from backup now. Teams environments only keep backups for up to seven days.
- After an upgrade, point-in-time restore only goes back to the upgrade, so export any data you can't afford to lose before you start.
- If the environment is past recovery, rebuild from exported solutions and any data exports you kept.
- 05Learnthis month
- Add the app to your systems list, with an owner and a licence count. Next time it won't be a surprise.
- Write down what blocked you so the next upgrades are scheduled around it.
What this looks like in real estates
Four typical situations
- the setup
- Staff book leave through an app a manager built in the company-wide team. The firm has Microsoft 365 business plans and no Power Platform licences at all.
- what happens
- An upgrade keeps the app, but all 60 users would then need a Power Apps licence. If nobody decides, the app stops opening on 15 September 2027 and the leave history goes with it.
- what to do
- Price both routes: licences for everyone, or a rebuild on something you already pay for. Export the leave records either way, and set a decision date in spring.
- the setup
- Teams creation was open for years. The admin center lists 40 Teams-type environments; about half show no activity this year, and two are close to the 2 GB cap.
- what happens
- The first upgrade stops with a capacity error, because the tenant's free Dataverse capacity is smaller than the biggest environment. Meanwhile the normal 90-day cleanup is quietly disabling the idle ones.
- what to do
- Retire the unused ones on purpose, after saving any records you need. Move the two large apps into a department environment with room, and upgrade the rest in small batches.
- the setup
- IT built a helpdesk agent with Copilot Studio inside Teams. Thousands of staff ask it questions every week, and so far it hasn't cost anything beyond the Teams plan.
- what happens
- After an upgrade the agent keeps working, but Microsoft counts qualifying sessions as billed from then on. Editing it in the Copilot Studio web app also needs a standalone licence.
- what to do
- Estimate monthly sessions before you upgrade and get the Copilot Studio capacity approved. Schedule the upgrade out of hours and warn users, since chats can fail while it runs.
- the setup
- Finance uses an audit checklist app for a few weeks each spring. It lives in a Teams environment, and the team owner who built it has left the company.
- what happens
- After 90 days without activity the environment is disabled, and after 120 it's deleted. The warnings go to the team owners and, once they've left, to tenant admins who don't know the app, so the app is gone before the retirement even arrives.
- what to do
- Find a new team owner now. Upgrade or move the app before its quiet months start, and put it on the monthly Last activity check.
How Cohash helps
We do the inventory first, then sit with team owners and sort the apps people use from the ones nobody opens. Finance gets a licence and capacity figure per app. Then we upgrade or move environments in batches, test each app and flow, and hand you the owner list. See our Power Platform work, the engineers we place on Power Platform projects, or start with a free assessment.
What to take from this
- 01
New Teams environments stop on 15 November 2026. Existing ones go dark on 15 September 2027 unless somebody upgrades them, so start counting now.
- 02
The upgrade keeps everything. Users then need Power Platform licences, though, and the data counts against capacity you pay for.
- 03
Filter the admin center by Type Microsoft Teams and sort by Last activity to find what matters.
- 04
Check capacity before anything else. If the tenant can't hold the environment, the upgrade simply won't start.
- 05
Inactivity cleanup keeps running until then. Upgrade seasonal apps early and give each one an owner who'll notice.
01Is Dataverse for Teams being discontinued?
Yes. Microsoft has deprecated it, and you can't create a new one after 15 November 2026. Anything that hasn't been upgraded to Dataverse stops working on 15 September 2027 and is decommissioned about six weeks later, on 30 October. After that its apps, flows, agents and data are gone, so the real work is deciding what's worth keeping.
02Will we lose our Teams chats, channels or files?
No. Only the Dataverse for Teams environment and whatever's inside it are affected. The team keeps its channels, chats, files and SharePoint site.
03How much will the upgrade to Dataverse cost us?
The click itself costs nothing. After the upgrade, people who use the apps, flows and agents need Power Apps, Power Automate or Copilot Studio licences, and the environment's storage counts against your tenant's Dataverse capacity. Microsoft's public list price for Power Apps Premium is $20 per user per month, paid yearly, and extra database capacity is $40 per GB per month. Count real users per app before you budget.
04Who can upgrade the environment?
A tenant admin, such as a Power Platform admin, does it from the Power Platform admin center. Microsoft puts the upgrade with tenant admins, so the team owner's job is telling the admin which environments matter.
05Why does the upgrade fail with a capacity error?
The upgrade moves the data into your tenant's paid storage, so the tenant needs at least as much free Dataverse capacity as the environment already uses. If it doesn't have that, the upgrade won't start. Free some space, buy more, or move the app into an environment with room, then try again.
06Will our Copilot Studio agents built in Teams keep working after the upgrade?
Yes. They keep working after the upgrade without any changes, though chats can fail while it's running. The difference shows up on the bill, because Microsoft counts qualifying sessions as billed from then on. Editing on the Copilot Studio website also needs a standalone or trial licence.
07Can we move the apps into a Dataverse environment we already have instead of upgrading?
Microsoft's deprecation notice says yes: export the apps, flows and tables as a solution and import them into a Dataverse environment. Its licensing FAQ still says that route isn't available yet, so test one environment first, and plan the data move separately.
08What if we do nothing?
The apps stop working on 15 September 2027, and the environment is decommissioned on 30 October 2027. If it sits unused before then, the inactivity cleanup may get to it first and disable or delete it.
Three questions, about a minute
Pick an answer and we'll tell you if it's right, and why it is or isn't. The score stays in this browser.
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Q1Nobody has opened a team's app since spring, and you've pencilled in its upgrade for next summer. What could go wrong before then?
show the answer
B. Inactivity cleanup gets it first: disabled at 90 days, gone at 120 The usual inactivity rules still apply until suspension. An unused Teams environment is disabled after 90 days, deleted after 120, and recoverable for only seven days after that.
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Q2You click Upgrade and get a capacity error back. What's most likely going on?
show the answer
D. There isn't enough free Dataverse capacity in the tenant to take the environment Upgrading moves the data into the tenant's paid storage. If there isn't at least as much free capacity as the environment uses, Microsoft won't start the upgrade.
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Q3You block Power Apps and Copilot Studio in Teams app policies. Can a new Dataverse for Teams environment still appear before 15 November?
show the answer
A. Yes. Add a sample app like Inspection or Employee Ideas to a team and one still appears Microsoft's admin docs say the sample apps can still create an environment when they're added to a team. Block those apps too if you want creation to stop now.