Consider transitioning from SharePoint Online Lists to Dataverse when your data needs evolve beyond what SharePoint can efficiently handle. Dataverse enhances your data management with advanced data modeling, robust support for complex business logic and automation, fine-grained security controls, and seamless integration with the Power Platform. It also ensures data consistency and offers superior scalability and reporting capabilities. While there is no official guidance on the precise timing for migration, the following key considerations will help you make informed decisions about when and how to effectively move your data from SharePoint Online lists to Dataverse.

1. When to Migrate from SharePoint List to Dataverse:

• Complexity and Scalability: Consider migrating when your data requirements outgrow the capabilities of a SharePoint list. Dataverse provides more robust data modeling, relationships, and scalability.
• Business Logic and Automation: If you need to implement complex business logic, workflows, or automation, Dataverse offers better support through model-driven apps and Power Automate.
• Security and Permissions: Dataverse allows fine-grained security controls, including record-level permissions. If your SharePoint list security model becomes too restrictive, consider migrating.
• Integration with Power Platform: If you plan to build apps, automate processes, or create custom connectors using Power Platform, Dataverse is a better fit.
• Data Consistency and Reporting: Dataverse ensures data consistency across apps and provides better reporting capabilities.

Learn how to migrate your data using dataflows Create and use dataflows in Power Apps – Power Apps | Microsoft Learn

2. Data Capacity Comparison:

SharePoint Lists:

• Can hold up to 30 million rows (with considerations for lists exceeding 100,000 items).
• Suitable for smaller, simpler datasets within an application.
• Stored on SharePoint sites.

Dataverse:

• No specified limit on rows.
• Supports a wide range of data types (up to 24), including relational, file, image, and more.
• Ideal for scalability, business logic, and integration with Power Platform.

For a more detailed comparison list please review Comparing Microsoft Lists, Dataverse for Teams, and Dataverse – Power Apps | Microsoft Learn