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

Occasional Visitor

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.

1 Reply
Might be some other (undocumented?) limit. Try assigning a different admin role, such as Group admin? Or better yet, open a support request :)