https://medium.com/@doolatunde/restrict-users-from-creating-new-teams-in-microsoft-teams-and-office-365-groups-76f8402148f6

1. In Office 365 Admin (users and groups)  – Create a SECURITY Group called:   AllowedToCreateOffice365Group_SG

2. Add in users to that group

3. Open Powershell ISE as Administrator and run script

**

If you have any issue:

Uninstall-Module AzureAD

Install-Module -Name AzureADPreview

Script:

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$GroupName = “AllowedToCreateOffice365Group_SG”
$AllowGroupCreation = “False”
Connect-AzureAD
$settingsObjectID = (Get-AzureADDirectorySetting | Where-object -Property Displayname -Value “Group.Unified” -EQ).id
if(!$settingsObjectID)
{
$template = Get-AzureADDirectorySettingTemplate | Where-object {$_.displayname -eq “group.unified”}
$settingsCopy = $template.CreateDirectorySetting()
New-AzureADDirectorySetting -DirectorySetting $settingsCopy
$settingsObjectID = (Get-AzureADDirectorySetting | Where-object -Property Displayname -Value “Group.Unified” -EQ).id
}
$settingsCopy = Get-AzureADDirectorySetting -Id $settingsObjectID
$settingsCopy[“EnableGroupCreation”] = $AllowGroupCreation
if($GroupName)
{
$settingsCopy[“GroupCreationAllowedGroupId”] = (Get-AzureADGroup -Filter “DisplayName eq ‘$GroupName’”).objectId
}
else {
$settingsCopy[“GroupCreationAllowedGroupId”] = $GroupName
}
Set-AzureADDirectorySetting -Id $settingsObjectID -DirectorySetting $settingsCopy
(Get-AzureADDirectorySetting -Id $settingsObjectID).Values

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