AB-900 lesson 2: where your data lives

Lesson 2 of 12 · 7 min read · Updated October 16, 2026

In Microsoft 365, mail lives in Exchange Online mailboxes, shared documents live in SharePoint sites, personal files live in OneDrive, and Teams is a front end that stores its content in those same places: channel files in a SharePoint site, chat files in OneDrive, and compliance copies of messages in mailboxes. Knowing this map explains most “where do I configure it” questions, and later helps with retention, search and oversharing.

Exchange: mailboxes and groups

The Exchange admin center manages recipients. A user mailbox belongs to one licensed person. A shared mailbox lets several people read and send as one address, such as a support inbox. Room and equipment mailboxes represent bookable resources. A distribution group only forwards messages to its members; it has no inbox of its own and cannot be used for permissions or licences. A mail-enabled security group does both: it delivers mail and can also be used to grant access. Mail flow rules and connectors are managed here as well.

SharePoint: sites, libraries and folders

Where Microsoft 365 data is storedChannel messages and email are stored in Exchange mailboxes, channel files in SharePoint and chat files in OneDrive, each managed in its own admin center.What people doWhere it is storedManaged inTeams messagechat or channelEmailChannel fileChat file1:1 and group chatsExchange Onlinemailboxes: email andcompliance copies ofTeams messagesSharePoint siteOneDriveof the person who sharedExchangeadmin centerSharePointadmin center
Teams messages are copied to Exchange mailboxes, channel files live in a SharePoint site, chat files live in OneDrive, and each workload has its own admin center.

The figure above summarises the flow. In the SharePoint admin center an admin manages sites, tenant sharing settings and storage. Inside a site sit document libraries, and inside libraries sit folders and files. Permissions flow downward: folders inherit from the library, and the library from the site, unless inheritance has been broken for a specific item.

Two kinds of site matter. A team site is connected to a Microsoft 365 group, so membership of the group is membership of the site. A communication site is for broadcasting to many readers and uses the SharePoint permission groups directly. Private and shared channels in Teams each get their own separate site.

Site roles

SharePoint groupWhat the members can do
OwnersFull control: change settings, manage permissions
MembersEdit: add, change and delete content
VisitorsRead only

For a team site connected to a Microsoft 365 group or a Teams team, group owners become site owners and group members become site members, and the recommended place to manage this is the group or the team, not the site. A sharing link for one file gives that person access to that item only, without making them a site member.

Teams: teams, channels and policies

The Teams admin center manages teams, channels and policies. A team is backed by a Microsoft 365 group. Standard channels are visible to all team members, private channels to selected members, and shared channels can include people from outside the team or organisation. Policies (messaging, meeting, app setup) are assigned to users or groups and decide what features those people get; they do not live inside a team.

OneDrive

OneDrive is each person’s own file space. Admins manage it from the SharePoint admin center, because OneDrive is built on the same platform. Files in OneDrive are private until the owner shares them.

Where Teams content is stored

Teams stores content in the services above:

  • Channel files go to the document library of the team’s SharePoint site, in a folder named after the channel.
  • Files shared in one-to-one and group chats are stored in OneDrive and shared from there.
  • Chat messages: the Teams chat service holds the primary copy, and a copy for compliance is kept in a hidden folder in the mailbox of each person in the chat.
  • Channel messages: a similar hidden folder in a group mailbox of the team holds the compliance copy.

This is why eDiscovery and retention for Teams involve Exchange, SharePoint and OneDrive together.

Worked example: a 120-person firm sets up a project

A 120-person consultancy starts a project with an outside partner. The admin creates a team, which also creates a Microsoft 365 group and a SharePoint site. The project lead becomes an owner, colleagues become members. A contractor needs read-only access to the final reports only, so the admin does not add them to the team; the contractor receives a Visitors-level role on a separate reports site. The project mailbox for incoming requests is created as a shared mailbox in the Exchange admin center, so three people can answer from one address without extra licences. When the partner joins a sensitive channel, the admin picks a shared channel so the partner works in that channel only. Each choice maps to one workload and one admin center.

Easy to confuse

Often mixed upThe difference
Distribution group vs security groupMail delivery only vs access control as well
Shared mailbox vs distribution groupA shared mailbox has an inbox; a distribution group does not
Team vs channelThe team is the membership boundary; channels organise conversations inside it
Teams policy vs team settingA policy is assigned to users; team settings belong to one team
Site role vs sharing linkRole gives standing access to the site; a link gives access to one item

Key points

  • Exchange holds mailboxes and groups; SharePoint holds sites, libraries and folders; OneDrive holds personal files.
  • Teams does not store files itself: channel files go to SharePoint, chat files to OneDrive.
  • Teams chat and channel messages have compliance copies in Exchange mailboxes.
  • Site roles are Owners (full control), Members (edit) and Visitors (read).
  • Teams policies are assigned to users or groups, not stored in a team.

Check yourself

Question 1. A support team needs one address that five people can read and reply from, and the admin does not want to purchase extra user licences. Which object fits best?

  • A. A distribution group
  • B. A shared mailbox
  • C. A SharePoint document library
  • D. A Teams messaging policy
Show answer

Answer: B

A shared mailbox gives several users access to one inbox and is created in the Exchange admin center. A distribution group has no inbox. A team site library stores files, not mail. A Teams messaging policy governs chat features.

Want more questions like this? Full AB-900 practice tests →

Question 2. A user shares a spreadsheet in a one-to-one Teams chat and later cannot find it in any team site. Where is that file stored?

  • A. In the team’s SharePoint site library
  • B. In a hidden folder of the recipient’s mailbox
  • C. In the Teams admin center
  • D. In the OneDrive of the person who shared it
Show answer

Answer: D

Files shared in one-to-one and group chats are stored in OneDrive. Channel files go to the team’s SharePoint site, not to chat. A hidden mailbox folder holds compliance copies of message text, not the shared file. The Teams admin center manages policies and does not store content.

Want more questions like this? Full AB-900 practice tests →

Question 3. A contractor must read documents on a communication site but must not edit anything. Which SharePoint group should the contractor join?

  • A. Visitors
  • B. Members
  • C. Owners
  • D. A distribution group for the contractor
Show answer

Answer: A

Visitors have read-only access. Members can edit, and Owners have full control including permissions. A distribution group does not grant site access.

Want more questions like this? Full AB-900 practice tests →

This lesson continues domain one of the course, which carries 30 to 35% of the exam. The recap page Microsoft 365 core features explained covers the same objects in table form, and the cheat sheet keeps the admin center map within reach.