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Has nothing to do with space but with internet privacy laws, they are not allowed to store them longer.
All logs from the last 14 days can be looked at at the Support page under "My Account" and then "Data related to my Account"
Here:
https://help.steampowered.com/en/accountdata/GetFriendMessagesLog
I went to this Data related to my account" page as you say and it's empty! Anyway it doesn't make any sense. If some laws prohibit Steam from keeping my chats (which looks like total nonsense to me), then how could they be keeping it anyway only in some separate page?
Privacy laws have been updated and many require steam to not collect and store personal information about you.
Chat applications that want to save their data have to go thru various certifications, requirements, etc.
Steam is not a chat service, they are a gaming platform with basic communication features.
What the ♥♥♥♥ am I chatting for if it can't be read back. How is it I can read this forum!? Should it not be nuked as well.
♥♥♥♥ these laws as they serve no purpose. You want privacy? Let them law it that they may not read your chats... that shuoud be enough, yes?