User can't create groups anymore: "...DirectoryServices.DirectoryQuotaExceededException'

Copper Contributor

Hey there. Hoping someone has insight into this. Thanks in advance.


I have a user that creates lots of groups in our 365 tenant. Suddenly they can't. I checked the Azure AD audit logs for the user, and the error that I see on all failed group-related activity is: 'Microsoft.Online.DirectoryServices.DirectoryQuotaExceededException'


The only semi-relevant result after searching is this link:

But this doesn't seem like it should be an issue, considering we are well under the amount of groups that is cited here:


I made the user a Distribution Group admin to allow for bypassing the 250 user-created group limit. That was a while ago (a few months), and they have created several hundred groups in total.


What's confusing me even more is that if this is a directory object limit issue, why can I make groups just fine with another admin account?


Does anyone have any idea what I can do to resolve this? Azure support hasn't responded at all.

3 Replies
Might be some other (undocumented?) limit. Try assigning a different admin role, such as Group admin? Or better yet, open a support request :)
I have the same issue where user suddenly gets same message when trying to create security groups via Azure. No documentation which says about limit regarding the security groups however can see for normal DLs and M365 groups which is 250. Any ideas or any documentation which I might be missing ??
Did anyone find an answer to this? We're raising with Microsoft now.