What happens to your data if you cancel the storage?
If you cancel the Apple I cloud program what happens to the data?
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If the amount of data exceeds the amount of space to which you downgrade, you will lose the data. Take a look at this.
Downgrade your iCloud storage - Apple Support
You can archive some of your iCloud data so that you can free up space in iCloud, but depending on what you do with the device, you may end up needing that space again anyway.