Hi @shubhambhangale
When the administration center gives us this warning, we are clearly overflowing with storage.
Dataverse has three types of storage: File and database, Log, Database only this storage is distributed in each environment you have, depending on the number of environments more or less each one in DB you spend 1.14 GB just to create a database environment Dataverse, as the data grows, the database increases.
You should look at what is happening to you from the point of view of an audit that allows you to assess where your database is increasing and how you can mitigate this increase. You could evaluate which processes or tables are increasing your volumetrics and if it is necessary to always have the data or you can do without it.
What I recommend is to analyze entity by entity and you can determine where the growth of your DB is.
I leave you the link so you can learn more about storage in dataverse
https://learn.microsoft.com/en-us/power-platform/admin/capacity-storage
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