AWS Lambda drops 75GB code storage cap with new self-managed S3 option

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AWS announced self-managed code storage for Lambda on July 17, 2026, allowing functions to reference deployment packages directly from a user-owned S3 bucket instead of copying them to Lambda-managed storage. The change effectively removes the per-region code storage limit, since capacity is now bounded only by the S3 bucket itself. AWS also raised the default limit for its managed storage from 75GB to 300GB per region per account, benefiting users who do not adopt the new feature. The self-managed mode, enabled by setting the S3ObjectStorageMode parameter to REFERENCE, also reduces function creation time and gives teams greater control over encryption, access policies, and compliance. To use the feature, the Lambda service principal must be granted s3:GetObject and s3:GetObjectVersion permissions on the relevant S3 bucket.

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