The new Allocate Capacity feature allows administrators to manage and optimize storage allocation across different environments. It allows administrators to strategically distribute available storage among the Dataverse environments based on each environment’s unique needs ensuring each has the right amount of storage to maintain performance and avoid service interruptions.
Navigate to Resources >> Capacity >> Dataverse inside the Power Platform Admin Center and select an environment to make the Allocate capacity option visible.

It shows the available storage, and current usage of the environment selected.

We can allocate Database, Log, and File-specific storage and also configure alerts.

If an environment exceeds, it shows up as “Overage” as shown below

Using this new feature, admins can Allocate Capacity effectively by monitoring the storage usage across environments, setting alerts when the environment nears its capacity limit, and allocating the capacity strategically e.g. production environment will get higher allocation compared to the development environment. Admins can also purchase additional storage and allocate it as required to ensure each environment runs smoothly.
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Hope it helps..
