I have it stored on a 2 TB external HD. When I go to copy just a portion of the dated backup folders to a new HD it is over 3 TB of files. Which, this isn't possible because the disk isn't that large.
This is definitely possible when the backup disk is formatted as APFS -- as it will be if the Time Machine backup was started under a recent version of macOS. In this case, one must consider the new APFS features of
sparse files and
clone files. There are many relevant posts at
https://eclecticlight.co. about these new storage schemes and how Time Machine deals with them.
Sparse files may take much less disk space than their "actual" size. A program can create a 10GB file for example, but only "seek" to various spots within the file to write, say 200 MB of data. On disk, it would only use up about 200MB -- not even close to its potential 10GB size. The above site indicates that it this is not uncommon for system files and databases.
Clone files: say you use Finder to make an exact copy of a 5GB file. APFS will show two separate files (inodes), but on disk, only 5GB will be used up! Now if you modify one of them, say by changing 100MB, only the changed data is written to disk. So the two files together (which
look in Finder to total 10GB), will only use 5.1GB of disk space!
Here's the thing about these special file types: Time Machine
is able to copy them from your source volume to an APFS-formatted backup volume while retaining these special properties. However, (at least at this time), no other tools or commands can do this magic. Whenever you copy a sparse file to a new
volume (disk), it is written out to disk in full. Whenever you copy two cloned files to a new
volume, both files are written at full size, and the shared data is duplicated.
So, just the act of copying from the backup (even to an APFS disk) can expand these special files' disk requirements many-fold. In these cases, my understanding is that it doesn't matter if you copy with Finder, cp, rsync, or whatever. And that Apple has not released documentation or APIs to enable tools other than Time Machine to do this magic.