Dataverse for Teams is retiring: upgrade your environments before they're deleted

Thousands of teams built approval apps, trackers and bots on Dataverse for Teams because it came free inside Microsoft Teams. Microsoft has now deprecated the whole environment type, and the schedule has a sting: environments that weren't upgraded were already suspended on September 15, 2026 — their apps, flows, agents and data unavailable — and everything still not upgraded is decommissioned on October 30, 2027. Suspension is reversible by upgrading; decommissioning is not.

The timeline

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1. 1Sep 15, 2026 · unupgraded environments suspended
2. 2Nov 15, 2026 · no new environments
3. 3Oct 30, 2027 · decommissioned for good

Find your Dataverse for Teams environments

1. In the Power Platform admin center, open Manage > Environments.
2. Filter the list where Type is Microsoft Teams.
3. Use Last activity to tell the environments people still rely on from the ones nobody will miss.

Environments you don't need require no action — they simply get decommissioned.

Before you upgrade: capacity and licences

Two prerequisites decide whether the upgrade goes through and whether anyone can use the result:

• Capacity. Your tenant must have at least as much available Dataverse capacity as the environment's size. Without it, the upgrade is blocked with an error. After the upgrade, the environment counts against tenant capacity.
• Licences. Dataverse for Teams came with Microsoft 365. A full Dataverse environment doesn't: after the upgrade, people need Power Apps, Power Automate or Copilot Studio licences to use the apps, flows and agents.

Upgrade an environment

1. In the admin center's environment list, select the Dataverse for Teams environment.
2. Start the upgrade from the environment's page and confirm the implications dialog.
3. Watch the notifications as the operation moves through its states.

After the upgrade, everything stays: apps can run inside and outside Teams, makers find and edit their work in Power Apps and Power Automate, team owners hold the System Administrator role, and the environment outlives the team — deleting the team no longer deletes the environment. From there, apply your normal governance: environment groups, data policies, Managed Environments.

The alternative: move the solutions

If an upgrade doesn't fit — capacity is tight, or the work belongs with other solutions anyway — export instead:

1. In the Dataverse for Teams environment, export the apps, flows and tables as a solution.
2. Import the solution into an existing Dataverse environment.
3. Re-point anything that referenced the old environment and retire it.

Sources

• Important changes (deprecations) coming in Power Platform — Microsoft Learn
• About the Microsoft Dataverse for Teams environment — Microsoft Learn
• Establish governance policies to manage Dataverse for Teams environments — Microsoft Learn
• How are Dataverse for Teams and Dataverse different? — Microsoft Learn