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Breaking down Azure Storage Pricing: Everything You Must Know

Microsoft Azure offers many storage solutions for scaling applications, performance and budget. Azure storage processes over 10 billion transactions every minute.  

But Azure Storage Pricing can get quite complicated with many storage types (e.g. blobs, blob storage, table storage), different storage tiers, etc.  

When storing data in the cloud, you must consider how much you will pay and what costs are involved (like data storage or transaction costs).  

This article discusses the pricing of Azure storage and how storage choices impact pricing in Microsoft Azure. 

This article is part of a series about Azure pricing.

Niels Kroeze

Author

Niels Kroeze IT Business Copywriter

Reading time 16 minutes Published: 25 March 2025

How does Azure storage pricing work? 

Azure storage pricing is always based on the amount you’re using. In other words, you pay for what you use. This includes the amount of data stored, transactions, outbound bandwidth consumption and redundancy options.  

The cost of storing data is not just about the amount of data stored but also the storage tier. Azure storage has various access tiers: Hot, Cool, Cold and Archive.  

Each tier is suited to different data access needs and usage frequencies, affecting both cost and accessibility. 

Storage cost comparison chart showing increasing transaction cost from low (archive) to high (premium) storage tiers.

  • Hot tier:  
    • For frequent data reads and writes 
    • Highest storage cost, lowest access cost 
  • Cool tier:  
    • For less-frequently accessed data 
    • Lower storage cost, higher access cost 
    • Minimum retention of 30 days 
  • Cold tier:  
    • For rarely accessed data (like backups). 
    • Lower storage costs than the cool tier but with higher access charges 
    • Minimum retention of 90 days 
  • Archive tier:  
    • Cheapest storage option 
    • Costly and slow to access – rehydration can take up to 15 hours 
    • Great for long-term backups or compliance data 
    • 180-day minimum storage period 

*Early deletion fees apply when you remove data before the tier’s minimum retention period. 

The chart below compares the cost of storing data versus transactions: 

Line graph displaying online storage costs for hot, cool, and cold storage, and transactions, with increasing costs over time.

As you move from Hot to Cooler tiers, storage costs decrease. Storing large files (like movies) is cheaper in cooler tiers if infrequently accessed. On the other hand, data access costs increase as the storage tier cools down. 

All storage tiers have a per-transaction charge, increasing as the storage tier cools. 

Additional costs of Azure storage you should consider: 

  • Geo-Replication costs: Geo-replication data transfer costs only apply to accounts that have geo-replication, GRS (Geo-redundant Storage) and RA-GRS (Read-Access Geo-Redundant Storage). These costs include per GB charge for data replication between 2 geographies and network transfer costs. 
  • Outbound data transfer costs: Data transferred out of an Azure region incurs charges based on bandwidth usage per GB. 

Aside from that, Azure storage prices also depend on the following: 

  • Customer region 
  • Payment plan 
  • Type of storage used 

Moving along, let's check redundancy and replication within Microsoft Azure.

 

Azure Storage Data Redundancy Options 

Redundancy ensures that your data is durable and available. Azure Storage always stores multiple copies of your data to protect it from planned and unplanned events such as transient hardware failures, network or power outages, and natural disasters. 

While Azure provides various redundancy options, their availability depends on the specific storage service. Blob storage offers the most redundancy choices, whereas a service like Managed Disk provides limited options.  

You can choose the redundancy option that best matches your durability, availability, and cost requirements. The available replication options are explained below: 

Redundancy in the primary region includes:

  • Locally redundant storage (LRS)
  • Zone-redundant storage (ZRS)

 

Locally redundant storage (LRS) 

Locally redundant storage (LRS) keeps three synchronous copies of your data within a single data centre in the primary region.

Diagram showing a storage account with three copies (Copy 1, Copy 2, Copy 3) within a primary region datacenter LRS.
Source: Microsoft
 

Zone-redundant storage (ZRS) 

Zone-redundant storage (ZRS) stores three synchronous copies of your data across separate Availability Zones within the same primary region.

Diagram of three availability zones, each containing a datacenter, storage account, and copy.

Source: Microsoft

Geo-redundant storage (GRS) 

Geo-redundant storage (GRS) replicates your data locally in the primary region, then asynchronously copies it to one secondary region located hundreds of miles away.

Diagram illustrating geo-replication of storage accounts across primary and secondary regions, showing copies 1, 2, and 3.
Source: Microsoft

GEO-zone-redundant storage (GZRS) 

Geo-zone-redundant storage (GZRS) replicates your data across three zones in the primary region, then asynchronously to one secondary region.

Diagram illustrating a cloud storage system's availability zones and geo-replication across primary and secondary regions.
Source: Microsoft
 

Performance Tiers in Azure Storage 

Azure storage provides two primary performance tiers tailored to different workloads: the Standard tier and the Premium tier.  

Standard tier 

The Standard tier is optimised for general-purpose workloads with moderate performance needs and is backed by hard disk drives (HDD). It is ideal for cost-effective general-purpose storage.  

Use Cases include:  

  • Bulk data storage 
  • Archiving 
  • Less frequently accessed workloads 

Premium tier 

The Premium tier is optimised for low latency and high throughput workloads (I/O-sensitive workloads) and is backed by solid-state drives (SSD).  

Use cases are:  

  • Transaction-heavy applications 
  • Virtual machine disks 
  • High-performance databases 

Now, some Azure storage services offer either both or one of the Standard and Premium performance tiers depending on workloads and use cases. For instance, Blob Storage offers both the Standard and Premium tiers, whereas Queues only offers the Standard option. We’ll get back to this more in detail in a bit.  
 
But first, let’s dig into the different storage types within Microsoft Azure. 

 

Azure Storage Types 

Azure Storage includes massively scalable object storage for data objects, a cloud file system, a messaging store for secure communications, and a NoSQL store. Azure Storage accounts are extremely durable and available.  

The table below lists the different Azure storage types along with their starting prices for each of them in Central US: 

Storage Type Description Starting Price
Azure Block Blobs Scalable object storage for documents, videos, images, and unstructured data, with Hot, Cool, and Archive tiers.

$0.00168/GB per month 

(LRS Archive, 3-year reserved capacity) 

Azure Page Blobs Optimised for random read/write, ideal for overwriting small data segments; supports disk traffic as unmanaged disks.  $0.045 per GB (LRS file storage - standard) 
Azure Files (File Storage) File Storage uses the SMB Protocol or Rest API to retrieve files. It can be used to mount file shares on Windows, Linux, and Mac machines. $0.0150/GiB a month (LRS, HDD, cool tier storage - PAYG model)
Azure Data Lake Storage Gen2 Hadoop-compatible file system with hierarchical namespace, combining scalability and cost-efficiency of Blob Storage. $0.002/GB (LRS, file storage, archive tier)
Azure Managed Disks Persistent, secure disks for scalable VM deployment, offering 99.999% availability. $1.54 per month (Standard managed disks - S4)
Azure Table Storage A low-cost method of storing table-like data for apps. This type of storage is key-attribute storage and is most useful for NoSQL data. $0.045/GB a month (LRS file storage)
Azure Queue Storage A messaging service used to retrieve and save messages. A queue may hold millions of messages. $0.045/GB a month (LRS file storage)

 

As you can see, there are different types of blobs in Azure, such as

  • Block blobs
  • Page blobs

 

Azure Blob Storage  

Azure Blob Storage is great for storing videos, images, large files such as documents, log files, and other unstructured text or binary data. It’s also great for storing data for backup and restore, disaster recovery, and archiving. Blob storage stores things in the form of objects.

 

Azure Block Blobs 

Azure Block Blobs are ideal for storing large amounts of unstructured data, such as media files, PDFs, or random data. They are highly flexible, supporting REST API, NFS, and SFTP. 

They are made up of blocks chained together, allowing for efficient uploads. Each block is identified by a Block ID, and a block blob can contain up to 50,000 blocks. Block sizes vary based on the service version used. You can upload blocks with put block, commit them using put block list, or upload smaller blobs directly with put blob.  

The price of Block Blob storage depends on the following: 

  • Data volume 
  • Data redundancy option 
  • Storage tier (premium, hot, cool, cold, archive) 
  • Purchasing option (PAYG or Azure storage reserved capacity)  

When you opt for credit card payment (PAYG), the price will look like this*: 

PAYG model  Premium Hot Cool Cold Archive
First 50 terabyte (TB)/month  $0.18/GB $0.18/GB $0.01/GB $0.00443/GB $0.002/GB
Next 450 TB/month  $0.18/GB $0.0173/GB $0.01/GB $0.00443/GB $0.002/GB
Over 500 TB/month  $0.18/GB $0.0166/GB  $0.01/GB $0.00443/GB $0.002/GB

*Region: Central US 

You can save more on storage when leveraging Azure Reservations. But you must know precisely how much storage capacity you need for one or three years to ensure you don’t waste money. 

NOTE

If blobs are moved, overwritten or deleted before meeting the minimum retention period for their storage tier, they become subject to a deletion penalty. 

  • Cool-tier blobs have a minimum storage period of 30 days
  • Cold tier have 90 days
  • Archive Tiers are 180 days

 

Azure Page Blobs 

Azure Page Blobs, as section of 512-byte pages are optimised for random read and write options. It excels in scenarios that require the ability to overwrite a random small segment at a known address, like storing index-based and sparse data structures.

Page blobs can be accessed via the REST protocol or attached to a VM to handle disk traffic as Unmanaged Disks. 

 

Azure Files

Azure Files are managed file shares for cloud or on-premises deployments. Azure Files (File Storage) uses the Server Message Block (SMB) or the Network File System (NFS) protocol to retrieve files. It can be used to mount file shares on Windows, Linux, and mac machines.

Access Method Supported Clients
SMB macOS, Linux, Windows
NFS macOS, Linux

 

Azure Tables storage cost 

Azure Tables is a low-cost method of storing table-like data for apps. This type of storage is key-attribute storage and is most useful for NoSQL data.

The price you pay depend on the chosen tier: 

  • LRS (locally redundant storage)
  • GRS (geo-redundant storage)
  • Read-access geo-redundant (RA-GRS)
  • Zone-redundant storage (ZRS)
  • Geo-zone-redundant storage (GZRS). 

The pricing model for Azure Queue and Table Storage is consumption-based. You’re charged for the amount of data stored, the type of redundancy, and the transactions performed on your data. 

Here's the pricing breakdown for Azure Tables data storage (Central US): 

Storage Capacity LRS GRS RA-GRS ZRS GZRS RA-GZRS
Storage in GB/month $0.045/GB $0.06/GB $0.075/GB $0.0562/ GB $0.1012/GB $0.1265/GB

 

Deleting data is free, but additional charges apply for every 10000 operations. Your price is down to whether you batch, write, read, scan or list operations.

Here’s a breakdown of the price for each: 

Operations LRS GRS RA-GRS ZRS GZRS RA-GZRS
10K Batch Write Operations $0.0922 $0.184 $0.184 $0.0922 $0.1673 $0.1673
10K Write Operations $0.0308 $0.0615 $0.0615 $0.0308 $0.0558 $0.0558
10K Read Operations $0.0062 $0.0062 $0.0062 $0.0062 $0.0062 $0.0062
10K Scan Operations $0.111  $0.111  $0.111  $0.111  $0.111  $0.111 
10K List Operations $0.111  $0.111  $0.111  $0.111  $0.111  $0.111 
10K Delete Operations $0  $0  $0  $0  $0  $0 

As you can see, costs increase with redundancy (GRS is more expensive than LRS). This is due to data replication across multiple regions. 

 

Azure Queues Storage 

Azure Queue Storage is a messaging service used to retrieve and save messages. A queue may hold millions of messages. As opposed to Azure Blob Storage and Azure Files, Queues storage is more straightforward, offering the following tiers: 

  • LRS 
  • GRS 
  • RA-GRS  

This is what Azure Queues Storage will cost you: 

Storage Capacity LRS GRS  RA-GRS
Storage in GB/month $0.045 per GB $0.06 per GB $0.075 per GB

 

Mind you

You’ll be charged additionally for every, 10000 Class 1 or 2 operations; starting from $0,004.  

Azure Data Lake Storage Gen2 

Azure Data Lake Storage Gen2 (DLSg2) is a cloud-based storage solution designed for big data analytics built into Azure Blob Storage. Data Lake storage is not a standalone service or account type; rather, it's a set of advanced features integrated with the Blob storage service in your Azure storage account.  

When you enable hierarchical namespace, you gain advanced features like NFS protocol and SFTP access, allowing you to move files, recurse through directories, and use native file system operations. Additionaly, DLSg2 is the base for creating data lakes in Azure.

 

Azure Managed Disks 

Azure Managed Disks provide high-performance, durable block storage for Azure virtual machines. Azure offers four disk storage options to choose from: 

  • Ultra Disk Storage 
  • Premium SSD 
  • Standard SSD 
  • Standard HDD 

When you first look at it, its pricing may feel somewhat confusing. Azure Managed Disks pricing varies depending on performance, the disk category and size, reservation period and the capacity. Actions like snapshots and excessive bursting can drive up your monthly costs.  

Now, let’s dive deeper into each one of these disk storage options. 

 

Ultra Disk Storage 

Ultra Disk is the next-gen SSD with the lowest latency and consistently high throughput. They come in various sizes, offering configurable IOPS and throughput (MB/s), and are billed hourly. However, Ultra Disks only support locally redundant storage (LRS). 

The total cost of Ultra Disk depends on the disk size, performance configuration, and the number of disks used.

This is what you pay based on 730 hours per month: 

Ultra Disk Configuration Unit Hourly Price Monthly Price
Disk Capacity (GiB) GiB $0.000202 $0.14746
Provisioned IOPS IOPS $0.000084 $0.06132
Provisioned Throughput (MB/s) MBps $0.000542 $0.39566
Provisioned vcpu reservation charge* vCPU $0.00738 $5.3874

 

Premium SSD 

Azure Premium SSD Managed Disks are high-performance storage options designed for I/O-intensive workloads with low latency and high throughput. The total cost of Premium SSDs depends on the disk size, number of disks, and the volume of outbound data transfers. Different disk sizes provide varying levels of IOPS, throughput caps, and monthly pricing per GiB.

Furthermore, they support both locally-redundant storage (LRS) and zone-redundant storage (ZRS) for added resilience and are compatible with multiple VM sizes. 

Besides, there’s also a Premium SSD v2 Disk Storage option, which is built for performance-sensitive workloads that need consistently low read and write latency and high IOPS and throughput. It’s ideal for data-intensive applications like SQL Server as it lets you scale without increasing storage.

Here's the full pricing breakdown for the Premium SSD v2 Disk: 

Premium SSD v2 Configuration  Unit  Monthly Price  Hourly Price 
Disk Capacity GiBs  $0.091/GiB $0.000124
Provisioned IOPS  IOPS  $0.0059/provisioned IOPS over 3,000 IOPS 

Up to 3,000 IOPS at no additional cost 

$0.000008/provisioned IOPS over 3,000 IOPS 

Provisioned Throughput MB/s  $0.046/provisioned MB/s over 125 MB/s

Up to 125 MB/s at no additional cost 

$0.000062/provisioned MB/s over 125 MB/s 

 

Standard SSD & HDD 

Standard SSDs are a cost-effective storage option, ideal for test environments and entry-level production workloads. They also handle big data workloads with high throughput demands.  

The table below shows the costs of the cheapest tiers of Standard SSD: 

  Disk Size Price /month Max paid transactions/hour  Max transaction price /month Max total price /month Max IOPS (Max IOPS w/ bursting) Max throughput (Max throughput w/ bursting) Price per mount /month (Shared Disk) 
E1 4 GiB $0.30 6,800 $1.00 $1.30 500 (600) 100 MB/second (150 MB/second) $0.04
E2 8 GiB $0.60 13,400 $1.96 $2.56 500 (600) 100 MB/second (150 MB/second) $0.08
E3 16 GiB $1.20 26,600 $3.89 $5.09 500 (600) 100 MB/second (150 MB/second) $0.15
E4 32 GiB $2.40 43,400 $6.34 $8.74 500 (600) 100 MB/second (150 MB/second) $0.32
E6 64 GiB $4.80 81,200 $11.86 $16.66 500 (600) 100 MB/second (150 MB/second) $0.58

*LRS as redundancy options
*Central US as region 

Standard HDDs are more suitable for dev/test environments and infrequent access workloads where performance isn’t a must. 

The total cost for both storage options depends on:

  • Disk size
  • Number of disks
  • Transaction volume
  • Outbound data transfers

Standard SSDs support both LRS and ZRS options, whereas Standard HDDs only support LRS. 

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Best Practices for Managing Azure Storage Costs 

The amount of data stored in the cloud grows tremendously, making cost management essential. Strategic planning and the use of various features are key to optimising cost and enhancing efficiency in Azure storage.  

This also means implementing settings properly and using best practices to manage expenses without compromising performance or availability. These are some of the best practices for managing Azure Storage costs: 

 

Use the right storage access tier 

Organising data by access frequency is crucial for optimising storage costs in Azure. As discussed, Azure Blob Storage provides multiple access tiers (hot, cool, cold, and archive) for different data access patterns.  

Choose the appropriate tier based on access frequency and usage patterns. This can significantly reduce costs. Always assess carefully your data's access patterns.  

  • If you often access data, you should opt for the Hot tier.
  • For less frequently accessed data, you should use cooler tiers (cool, cold, and archive), which help lower storage costs.

However, retention periods apply for these tiers, so you cannot delete them whenever you want without associated costs. 

 

Enable blob storage lifecycle management 

Azure blob storage lifecycle management allows you to set rule-based policies to automate data transitions between storage tiers or delete data at the end of its lifecycle. This optimises your storage costs by ensuring data is stored in the most cost-effective tier based on access frequency. Storage capacity limits apply at the account level, allowing flexibility in using one or multiple tiers. 

 

Leverage tiering best practices 

Store unused append or page blobs, such as old log files or compliance data, in cooler storage tiers to reduce costs. Before transitioning data, combine smaller files into larger ones (e.g., zip archives) to minimise transfer operations and optimise storage efficiency.  

 

Leverage Azure Storage Reserved Capacity 

Azure Reservations are great for steady, predictable workloads. You can purchase reserved capacity for Blob Storage and achieve significant cost savings over pay-as-you-go (PAYG) pricing. This commitment allows you to secure a discounted rate for a set period, locking in discounted rates, which can make cloud storage more cost-effective. 

 

Organise data by retention duration 

Optimise storage costs by categorising data based on retention needs and storing it in the appropriate tier. You can configure a retention policy to delete old data that is no longer required automatically.  

For example, you can keep frequently accessed logs in the Hot tier for 30 days, then move them to cool storage for long-term retention. If unused after 180 days, they can be automatically deleted – saving you a fair chunk of your cloud bill. 

 

Use Azure Advisor 

Leverage Azure Advisor's cost optimisation recommendations to identify underused storage resources and get actionable insights on cutting unnecessary expenses. 

 

Minimise data egress by localising resources 

While data ingress (uploading data to Azure) is free, data egress (transferring data out of Azure) incurs charges. Data egress is an underestimated storage cost and can quickly add to the cloud bill.

To reduce cost, keep storage, compute, and services in the same region, especially for data-intensive applications.  

 

‍Use Calculators to estimate and understand Azure Storage Pricing 

Leverage Azure Pricing Calculator to estimate and understand storage costs before deployment, helping you budget effectively and avoid unexpected expenses. 

 

Optimise Azure Files for shared access workloads 

Based on your read/write patterns, Configure Azure Files with the right performance tier (Premium, Transaction Optimised, Hot, or Cool) for shared access workloads. 

Closing thoughts 

Azure storage pricing can be complex and get out of hand fast. It requires thoughtful planning, strategically choosing storage tiers, and using the best practices we’ve discussed. Remember to select the right storage options based on your access patterns, data retention needs and workload demands.  

Like with many services in Azure, pricing can be complex. At Intercept, we can help you to optimise your storage costs and everything cost-related in Microsoft Azure. Get the most out of your Azure subscription without overspending. Read about 12 tips for Azure Cost Optimisation and do not hesitate to reach out to us!

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