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MC1217152 Tenant setting update: Copilot capacity designation enabled by default

Summary

  • The tenant setting “Capacities can be designated as Fabric Copilot capacities” will be enabled by default for all tenants.
  • Capacity admins will see the setting turned on in the Fabric Admin portal.
  • Existing capacities not enabled for Fabric Copilot will not be affected by this change.
  • Organizations can opt out of the default-on update by turning on and then off the setting in the Fabric admin portal.

Admin Impact: Medium
User Impact: Low
Release Start: 12 Feb 2026
Release End: 12 Feb 2026
Services: M365 Copilot, Power BI
Category: Plan for change
Tags: User Adoption, Admin Action

History

1/13/2026 Item Added to Message Center

Microsoft Message

Introduction

We’re updating the default behavior of the tenant setting Capacities can be designated as Fabric Copilot capacities. Beginning on or after February 12, 2026, this setting will be enabled by default for all tenants.

This update affects only the tenant setting itself. It will not modify an existing capacity configuration. If your organization has not enabled any capacities for Fabric Copilot, this default change will have no impact on your current setup.

When this will happen

This change will begin rolling out on or after February 12, 2026.

How this affects your organization

Who is affected:

  • All tenants
  • Fabric capacity admins

What will happen:

  • The tenant setting Capacities can be designated as Fabric Copilot capacities will be automatically enabled by default.
  • Capacity admins will see the setting turned on in the Fabric Admin portal.
  • If your current capacities are not enabled for Fabric Copilot (FCC), this update will not alter or impact them.
  • Tenants that proactively opt out before rollout will be excluded from the default-on update.

What you can do to prepare

No action is required unless you prefer not to adopt this default-on behavior at rollout.

If your organization wants to opt out of the automatic default-on update:

  1. Turn the Copilot capacity designation setting on in the Fabric admin portal.
  2. Then turn the setting off immediately.

This action signals that your organization plans to enable Copilot capacities later, and we will skip applying the automatic change to your tenant.

Learn more

  • Capacities can be designated as Fabric Copilot capacities – Copilot tenant settings | Microsoft Fabric | Microsoft Learn
  • Fabric Copilot capacity | Microsoft Fabric | Microsoft Learn

Compliance considerations

No compliance considerations identified. Review as appropriate for your organization.