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My company is new to SharePoint. We have an on-premise installation with the file size limit set to the default of 250 mb. We've had a request to increase that limit to 500 mb. The Microsoft article on boundaries and limits states that

By default, the default document size threshold is set to 250 megabyte (MB), but can be changed to support the maximum boundary of 10 GB.

In the same article, Microsoft states that

The default file size is 2 gigabytes (GB) (2,047 MB). However, a large volume of very large files can affect farm performance.

I'm trying to identify the risks for the proposed increase. Content database limits are a risk. Are there others we need to evaluate? I can find a number of resources related to SharePoint 2010, but nothing for SharePoint 2016.

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There is no specific risk for maximum file size. Instead, the risk would lie with the content database size. As long as you can accommodate large content databases and meet any defined RPO/RTO, you should be all set. As I'm sure you're aware, even with a max file size defined (say 50MB), if you have enough of them, you can still have a very large database.

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I would do a testing before increasing the file size in the farm, because uploading the large file will take more time and some time you can have browser time out.

  • I will have a 10 users at the same time to upload the large file ( whatever size you want to set as max limit).
  • evaluate your SharePoint and SQL performance.
  • also test a library which have many large files in it.

check this and HOW TO MAKE SHAREPOINT 2016 NOT FAIL LONG RUNNING UPLOADS (LARGE FILES)

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