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We are currently switching from SP 2016 on premise to SPO.

In SP on premise we had a site template which was used for any new project site (power shell script running at site creation). As a result the site was created with predefined contents and workflows.

Is that possible in SPO?

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Site templates are available in SharePoint online modern experience as well.

You can create custom site templates using Site designs (site templates) and site script capability in SharePoint online.

Follow below links for more information:

  1. Site templates are coming to SharePoint Online
  2. SharePoint site template and site script overview
  3. Site design JSON schema

You can also use PnP provisioning engine for similar activities.

Documentation: Introducing the PnP provisioning engine

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