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I have a requirement from a client who want to store info about engineering diagrams(its location and the scanned copy(pdf)).

They also want SharePoint users to be able to perform searches on the data.

The client is also concerned about what impact storing >=10k rows will have on SharePoint. Most of the list data I've dealt with have been <100 rows and I'm not how this will impact SP.

Should the data be stored separately in SQL server and have SP display it as a list using BCS or CSOM or should it be stored directly in SP lists? Any tips or guidance will be appreciated.

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SharePoint Lists/Libraries handle up to 30 million items. Having stored 20-30k+ items in a List, I don't think that is much of an issue.

I would set up proper indexes on the list with views prior to adding your items, as exceeding 5k items in a filter will trigger the List View Threshold.

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