How to set up OneDrive Files On-Demand to save local disk space

Backup & Storage KB-148

Summary

This guide helps you troubleshoot and resolve: How to set up OneDrive Files On-Demand to save local disk space. Follow the steps below to fix the issue.

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Common Causes

OneDrive Files On-Demand allows you to see and access all your files in the OneDrive folder without requiring them to be downloaded to your local hard drive. This is an essential feature for small business users and home offices working with limited disk space, as it ensures your local storage is used only for the files you are actively editing.

How Files On-Demand Works

When this feature is enabled, your files are assigned one of three status icons in File Explorer (Windows) or Finder (macOS):

Online-only: The file is stored in the cloud and takes up no space on your computer. It is indicated by a blue cloud icon.
On this device: The file has been downloaded to your computer. It takes up space but is available offline. It is indicated by a green tick circle.
Always keep on this device: The file is permanently downloaded and will always be available even without an internet connection. It is indicated by a solid green circle with a white tick.

Detailed Instructions

Enabling Files On-Demand on Windows

Locate the OneDrive icon (blue or white cloud) in your system tray (bottom right corner of your screen).
Click the icon, then select the Settings (gear icon) > Settings.
In the left-hand menu, navigate to Sync and backup.
Scroll down to the Advanced settings section and expand it.
Under Files On-Demand, ensure the option Save space and download files as you use them is toggled to On.

Managing Individual Folders and Files

You can manually decide which files should stay on your hard drive and which should be moved back to the cloud to free up space:

Open File Explorer and navigate to your OneDrive folder.
To save space: Right-click a file or folder and select Free up space. This changes the status to Online-only.
To ensure offline access: Right-click a file or folder and select Always keep on this device.

Enabling Files On-Demand on macOS

Click the OneDrive icon in the menu bar at the top of your screen.
Select Settings > Preferences.
Under the Account tab, ensure that Files On-Demand is enabled.
In Finder, you can right-click any file or folder within the OneDrive directory and select Free Up Space or Always Keep on This Device.

Pro Tip: If you are performing a large-scale data migration or organising your archives, consider using How to backup photos to external drive for static media that does not need to be synced via OneDrive.

Troubleshooting

Files are not freeing up space

If you select Free up space but the disk usage does not decrease, try the following:

Ensure you have a stable internet connection; OneDrive must communicate with the server to verify the file is safely stored in the cloud before removing the local copy.
Check if the file is currently open in another application. Close all programs using the file and try again.
Restart the OneDrive application by right-clicking the icon and selecting Close OneDrive, then relaunching it from the Start menu.

Important: Do not manually delete files from the OneDrive folder using the Delete key if your intention is simply to save space. Deleting a file in the OneDrive folder will move it to the Recycle Bin and remove it from the cloud for all users. Always use the Free up space option instead.

If you encounter errors during the sync process or the Free up space option is missing from your menu, please Open a Ticket for further technical analysis.

Still Having Issues?

Need more help? If the issue persists after trying these steps, please open a support ticket and our team will assist you.

💻 Open a Ticket