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The "last 365 days" wording indicates a rolling window. For example, if your first extension was enabled on September 18, 2026, once that extension activation falls outside the previous 365-day period, it should no longer count toward the three-extension limit.
Microsoft has now documented this under the Dataverse capacity-based storage guidance: https://learn.microsoft.com/en-us/power-platform/admin/whats-new-storage
Your organization can request an extension a maximum of three times in the last 365 days. So it does not appear to be limited to three extensions for the lifetime of the tenant.
The "3 in the last 365 days" wording means this is a rolling 365-day limit, not a lifetime limit.
Microsoft currently documents that a tenant can request a capacity extension a maximum of 3 times in the last 365 days. Each extension provides an additional 25% of capacity and is available for up to 45 days.
So, for example, if your tenant uses an extension on 18 September 2026, that extension counts toward the 3-extension limit for the following 365-day window. As older extension events move outside that 365-day window, they no longer count toward the limit and another extension can become available.
This means:
One important point: I would not interpret the 365 days as meaning that the current extension itself lasts 365 days. The extension lasts 45 days; the 3-extension limit is measured over the previous 365 days.
So if you eventually consume all 3 available extensions, you would need to wait until one of those extension events falls outside the rolling 365-day window before that extension slot becomes available again.
For production use, I would still treat the extension as a temporary buffer rather than a recurring storage strategy. Microsoft recommends reducing consumption or purchasing additional Dataverse capacity when you're consistently over the entitlement.
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