diff --git a/.changelog/24785.txt b/.changelog/24785.txt
new file mode 100644
index 000000000..810e9df3f
--- /dev/null
+++ b/.changelog/24785.txt
@@ -0,0 +1,11 @@
+```release-note:breaking-change
+api: QuotaSpec.RegionLimit is now of type QuotaResources instead of Resources
+```
+
+```release-note:deprecation
+api: QuotaSpec.VariablesLimit field is deprecated and will be removed in Nomad 1.12.0. Use QuotaSpec.RegionLimit.Storage.Variables instead.
+```
+
+```release-note:deprecation
+quotas: the variables_limit field in the quota specification is deprecated and replaced by a new storage block under the region_limit block, with a variables field. The variables_limit field will be removed in Nomad 1.12.0
+```
diff --git a/api/quota.go b/api/quota.go
index 261d3d1d1..402c57a02 100644
--- a/api/quota.go
+++ b/api/quota.go
@@ -127,17 +127,38 @@ type QuotaLimit struct {
 	// referencing namespace in the region. A value of zero is treated as
 	// unlimited and a negative value is treated as fully disallowed. This is
 	// useful for once we support GPUs
-	RegionLimit *Resources
+	RegionLimit *QuotaResources
 
 	// VariablesLimit is the maximum total size of all variables
 	// Variable.EncryptedData. A value of zero is treated as unlimited and a
 	// negative value is treated as fully disallowed.
+	//
+	// DEPRECATED: use RegionLimit.Storage.VariablesMB instead. This field will
+	// be removed in Nomad 1.12.0.
 	VariablesLimit *int `mapstructure:"variables_limit" hcl:"variables_limit,optional"`
 
 	// Hash is the hash of the object and is used to make replication efficient.
 	Hash []byte
 }
 
+type QuotaResources struct {
+	CPU         *int                   `hcl:"cpu,optional"`
+	Cores       *int                   `hcl:"cores,optional"`
+	MemoryMB    *int                   `mapstructure:"memory" hcl:"memory,optional"`
+	MemoryMaxMB *int                   `mapstructure:"memory_max" hcl:"memory_max,optional"`
+	Devices     []*RequestedDevice     `hcl:"device,block"`
+	NUMA        *NUMAResource          `hcl:"numa,block"`
+	SecretsMB   *int                   `mapstructure:"secrets" hcl:"secrets,optional"`
+	Storage     *QuotaStorageResources `mapstructure:"storage" hcl:"storage,block"`
+}
+
+type QuotaStorageResources struct {
+	// VariablesMB is the maximum total size of all variables
+	// Variable.EncryptedData, in megabytes (2^20 bytes). A value of zero is
+	// treated as unlimited and a negative value is treated as fully disallowed.
+	VariablesMB int `hcl:"variables"`
+}
+
 // QuotaUsage is the resource usage of a Quota
 type QuotaUsage struct {
 	Name        string
diff --git a/api/util_test.go b/api/util_test.go
index 0e179b307..769027020 100644
--- a/api/util_test.go
+++ b/api/util_test.go
@@ -116,7 +116,7 @@ func testQuotaSpec() *QuotaSpec {
 		Limits: []*QuotaLimit{
 			{
 				Region: "global",
-				RegionLimit: &Resources{
+				RegionLimit: &QuotaResources{
 					CPU:      pointerOf(2000),
 					MemoryMB: pointerOf(2000),
 					Devices: []*RequestedDevice{{
diff --git a/command/quota_apply.go b/command/quota_apply.go
index 84d23d931..1c0373d70 100644
--- a/command/quota_apply.go
+++ b/command/quota_apply.go
@@ -6,6 +6,7 @@ package command
 import (
 	"bytes"
 	"encoding/json"
+	"errors"
 	"fmt"
 	"io"
 	"os"
@@ -231,7 +232,7 @@ func parseQuotaLimits(result *[]*api.QuotaLimit, list *ast.ObjectList) error {
 
 		// Parse limits
 		if o := listVal.Filter("region_limit"); len(o.Items) > 0 {
-			limit.RegionLimit = new(api.Resources)
+			limit.RegionLimit = new(api.QuotaResources)
 			if err := parseQuotaResource(limit.RegionLimit, o); err != nil {
 				return multierror.Prefix(err, "region_limit ->")
 			}
@@ -244,7 +245,7 @@ func parseQuotaLimits(result *[]*api.QuotaLimit, list *ast.ObjectList) error {
 }
 
 // parseQuotaResource parses the region_limit resources
-func parseQuotaResource(result *api.Resources, list *ast.ObjectList) error {
+func parseQuotaResource(result *api.QuotaResources, list *ast.ObjectList) error {
 	list = list.Elem()
 	if len(list.Items) == 0 {
 		return nil
@@ -271,6 +272,7 @@ func parseQuotaResource(result *api.Resources, list *ast.ObjectList) error {
 		"memory",
 		"memory_max",
 		"device",
+		"storage",
 	}
 	if err := helper.CheckHCLKeys(listVal, valid); err != nil {
 		return multierror.Prefix(err, "resources ->")
@@ -283,6 +285,7 @@ func parseQuotaResource(result *api.Resources, list *ast.ObjectList) error {
 
 	// Manually parse
 	delete(m, "device")
+	delete(m, "storage")
 
 	if err := mapstructure.WeakDecode(m, result); err != nil {
 		return err
@@ -296,9 +299,41 @@ func parseQuotaResource(result *api.Resources, list *ast.ObjectList) error {
 		}
 	}
 
+	// Parse storage block
+	storageBlocks := listVal.Filter("storage")
+	storage, err := parseStorageResource(storageBlocks)
+	if err != nil {
+		return multierror.Prefix(err, "storage ->")
+	}
+	result.Storage = storage
+
 	return nil
 }
 
+func parseStorageResource(storageBlocks *ast.ObjectList) (*api.QuotaStorageResources, error) {
+	switch len(storageBlocks.Items) {
+	case 0:
+		return nil, nil
+	case 1:
+	default:
+		return nil, errors.New("only one storage block is allowed")
+	}
+	block := storageBlocks.Items[0]
+	valid := []string{"variables"}
+	if err := helper.CheckHCLKeys(block.Val, valid); err != nil {
+		return nil, err
+	}
+	var storage api.QuotaStorageResources
+	var m map[string]interface{}
+	if err := hcl.DecodeObject(&storage, block.Val); err != nil {
+		return nil, err
+	}
+	if err := mapstructure.WeakDecode(m, &storage); err != nil {
+		return nil, err
+	}
+	return &storage, nil
+}
+
 func parseDeviceResource(result *[]*api.RequestedDevice, list *ast.ObjectList) error {
 	for idx, o := range list.Items {
 		if l := len(o.Keys); l == 0 {
diff --git a/command/quota_delete_test.go b/command/quota_delete_test.go
index 1f087b8fd..2cbb64d4e 100644
--- a/command/quota_delete_test.go
+++ b/command/quota_delete_test.go
@@ -101,7 +101,7 @@ func testQuotaSpec() *api.QuotaSpec {
 		Limits: []*api.QuotaLimit{
 			{
 				Region: "global",
-				RegionLimit: &api.Resources{
+				RegionLimit: &api.QuotaResources{
 					CPU: pointer.Of(100),
 				},
 			},
diff --git a/command/quota_init.go b/command/quota_init.go
index 2a7c46ebd..a338e0cb8 100644
--- a/command/quota_init.go
+++ b/command/quota_init.go
@@ -126,8 +126,10 @@ limit {
     device "nvidia/gpu/1080ti" {
       count = 1
     }
+    storage {
+      variables = 1000
+    }
   }
-  variables_limit = 1000
 }
 `)
 
@@ -148,9 +150,11 @@ var defaultJsonQuotaSpec = strings.TrimSpace(`
             "Name": "nvidia/gpu/1080ti",
             "Count": 1
           }
-        ]
-      },
-      "VariablesLimit": 1000
+        ],
+       "Storage": {
+       "Variables": 1000
+}
+      }
     }
   ]
 }
diff --git a/command/quota_init_test.go b/command/quota_init_test.go
index c83f7ba2d..daa97927c 100644
--- a/command/quota_init_test.go
+++ b/command/quota_init_test.go
@@ -18,7 +18,6 @@ func TestQuotaInitCommand_Implements(t *testing.T) {
 }
 
 func TestQuotaInitCommand_Run_HCL(t *testing.T) {
-	ci.Parallel(t)
 	ui := cli.NewMockUi()
 	cmd := &QuotaInitCommand{Meta: Meta{Ui: ui}}
 
@@ -31,7 +30,7 @@ func TestQuotaInitCommand_Run_HCL(t *testing.T) {
 	// Ensure we change the cwd back
 	origDir, err := os.Getwd()
 	must.NoError(t, err)
-	defer os.Chdir(origDir)
+	t.Cleanup(func() { os.Chdir(origDir) })
 
 	// Create a temp dir and change into it
 	dir := t.TempDir()
@@ -65,7 +64,6 @@ func TestQuotaInitCommand_Run_HCL(t *testing.T) {
 }
 
 func TestQuotaInitCommand_Run_JSON(t *testing.T) {
-	ci.Parallel(t)
 	ui := cli.NewMockUi()
 	cmd := &QuotaInitCommand{Meta: Meta{Ui: ui}}
 
@@ -78,7 +76,7 @@ func TestQuotaInitCommand_Run_JSON(t *testing.T) {
 	// Ensure we change the cwd back
 	origDir, err := os.Getwd()
 	must.NoError(t, err)
-	defer os.Chdir(origDir)
+	t.Cleanup(func() { os.Chdir(origDir) })
 
 	// Create a temp dir and change into it
 	dir := t.TempDir()
diff --git a/website/content/docs/upgrade/upgrade-specific.mdx b/website/content/docs/upgrade/upgrade-specific.mdx
index a724f458e..071635422 100644
--- a/website/content/docs/upgrade/upgrade-specific.mdx
+++ b/website/content/docs/upgrade/upgrade-specific.mdx
@@ -13,6 +13,23 @@ upgrade. However, specific versions of Nomad may have more details provided for
 their upgrades as a result of new features or changed behavior. This page is
 used to document those details separately from the standard upgrade flow.
 
+## Nomad 1.10.0
+
+#### Quota specification variable_limits deprecated
+
+In Nomad 1.10.0, the quota specification's `variable_limits` field is
+deprecated. It is replaced by a new `storage` block with a `variables` field,
+under the `region_limit` block. Existing quotas will be automatically migrated
+during server upgrade. The `variables_limit` field will be removed from the
+quota specification in Nomad 1.12.0.
+
+#### Go SDK API change for quota limits
+
+In Nomad 1.10.0, the Go API for quotas has a breaking change. The
+`QuotaSpec.RegionLimit` field is now of type `QuotaResources` instead of
+`Resources`. The `QuotaSpec.VariablesLimit` field is deprecated in lieu of
+`QuotaSpec.RegionLimit.Storage.Variables` and will be removed in Nomad 1.12.0.
+
 ## Nomad 1.9.5
 
 #### CNI plugins