diff --git a/conda-store-server/conda_store_server/__init__.py b/conda-store-server/conda_store_server/__init__.py
index b18e2e8e9..60dfdb27d 100644
--- a/conda-store-server/conda_store_server/__init__.py
+++ b/conda-store-server/conda_store_server/__init__.py
@@ -1,4 +1,5 @@
 import datetime
+import hashlib
 import typing
 
 import platformdirs
@@ -32,6 +33,8 @@ class BuildKey:
 
     _version2_hash_size = 8
 
+    _version3_experimental_hash_size = 32
+
     def _version1_fmt(build: "Build") -> str:  # noqa: F821
         datetime_format = "%Y%m%d-%H%M%S-%f"
         hash = build.specification.sha256
@@ -48,10 +51,34 @@ def _version2_fmt(build: "Build") -> str:  # noqa: F821
         name = build.specification.name
         return f"{hash}-{timestamp}-{id}-{name}"
 
+    # Warning: this is an experimental version and can be changed at any time
+    def _version3_experimental_fmt(build: "Build") -> str:  # noqa: F821
+        # Caches the hash value for faster lookup later
+        if build.hash is not None:
+            return build.hash
+
+        # Adds namespace here to separate builds performed by different users
+        # since all builds are stored in the same directory in v3, see
+        # Build.build_path in orm.py. Additionally, this also hashes the
+        # timestamp and build id just to make collisions very unlikely
+        namespace_name = build.environment.namespace.name
+        specification_hash = build.specification.sha256
+        tzinfo = datetime.timezone.utc
+        timestamp = int(build.scheduled_on.replace(tzinfo=tzinfo).timestamp())
+        build_id = build.id
+        hash_input = (
+            namespace_name + specification_hash + str(timestamp) + str(build_id)
+        )
+        hash = hashlib.sha256(hash_input.encode("utf-8")).hexdigest()
+        hash = hash[: BuildKey._version3_experimental_hash_size]
+        build.hash = hash
+        return hash
+
     # version -> fmt function
     _fmt = {
         1: _version1_fmt,
         2: _version2_fmt,
+        3: _version3_experimental_fmt,
     }
 
     @classmethod
@@ -88,8 +115,13 @@ def get_build_key(cls, build: "Build") -> str:  # noqa: F821
         return cls._fmt.get(build.build_key_version)(build)
 
     @classmethod
-    def parse_build_key(cls, build_key: str) -> int:
+    def parse_build_key(
+        cls, conda_store: "CondaStore", build_key: str  # noqa: F821
+    ) -> int:
         """Returns build id from build key"""
+        # This import is here to avoid cyclic imports
+        from conda_store_server import orm
+
         parts = build_key.split("-")
         # Note: cannot rely on the number of dashes to differentiate between
         # versions because name can contain dashes. Instead, this relies on the
@@ -97,5 +129,11 @@ def parse_build_key(cls, build_key: str) -> int:
         # to find the id is okay.
         if build_key[cls._version2_hash_size] == "-":  # v2
             return int(parts[2])  # build_id
+        elif "-" not in build_key:  # v3
+            with conda_store.get_db() as db:
+                build = db.query(orm.Build).filter(orm.Build.hash == build_key).first()
+                if build is not None:
+                    return build.id
+                return None
         else:  # v1
             return int(parts[4])  # build_id
diff --git a/conda-store-server/conda_store_server/alembic/versions/e17b4cc6e086_add_build_hash.py b/conda-store-server/conda_store_server/alembic/versions/e17b4cc6e086_add_build_hash.py
new file mode 100644
index 000000000..f7223aec7
--- /dev/null
+++ b/conda-store-server/conda_store_server/alembic/versions/e17b4cc6e086_add_build_hash.py
@@ -0,0 +1,26 @@
+"""add build hash
+
+Revision ID: e17b4cc6e086
+Revises: 03c839888c82
+Create Date: 2024-03-26 04:39:24.275214
+
+"""
+
+import sqlalchemy as sa
+
+from alembic import op
+
+
+# revision identifiers, used by Alembic.
+revision = "e17b4cc6e086"
+down_revision = "03c839888c82"
+branch_labels = None
+depends_on = None
+
+
+def upgrade():
+    op.add_column("build", sa.Column("hash", sa.Unicode(length=32), nullable=True))
+
+
+def downgrade():
+    op.drop_column("build", "hash")
diff --git a/conda-store-server/conda_store_server/app.py b/conda-store-server/conda_store_server/app.py
index bac136d9f..27976ed55 100644
--- a/conda-store-server/conda_store_server/app.py
+++ b/conda-store-server/conda_store_server/app.py
@@ -112,7 +112,7 @@ class CondaStore(LoggingConfigurable):
 
     build_key_version = Integer(
         BuildKey.set_current_version(2),
-        help="Build key version to use: 1 (long, legacy), 2 (short, default)",
+        help="Build key version to use: 1 (long, legacy), 2 (shorter hash, default), 3 (hash-only, experimental)",
         config=True,
     )
 
diff --git a/conda-store-server/conda_store_server/build.py b/conda-store-server/conda_store_server/build.py
index 233a39b33..baa7dace0 100644
--- a/conda-store-server/conda_store_server/build.py
+++ b/conda-store-server/conda_store_server/build.py
@@ -196,7 +196,8 @@ def build_conda_environment(db: Session, conda_store, build):
         conda_prefix.parent.mkdir(parents=True, exist_ok=True)
 
         environment_prefix = build.environment_path(conda_store)
-        environment_prefix.parent.mkdir(parents=True, exist_ok=True)
+        if environment_prefix is not None:
+            environment_prefix.parent.mkdir(parents=True, exist_ok=True)
 
         with utils.timer(conda_store.log, f"building conda_prefix={conda_prefix}"):
             context = action.action_solve_lockfile(
@@ -247,7 +248,8 @@ def build_conda_environment(db: Session, conda_store, build):
                 ),
             )
 
-        utils.symlink(conda_prefix, environment_prefix)
+        if environment_prefix is not None:
+            utils.symlink(conda_prefix, environment_prefix)
 
         action.action_set_conda_prefix_permissions(
             conda_prefix=conda_prefix,
diff --git a/conda-store-server/conda_store_server/orm.py b/conda-store-server/conda_store_server/orm.py
index ba815bbc3..42533bc29 100644
--- a/conda-store-server/conda_store_server/orm.py
+++ b/conda-store-server/conda_store_server/orm.py
@@ -233,6 +233,9 @@ class Build(Base):
     ended_on = Column(DateTime, default=None)
     deleted_on = Column(DateTime, default=None)
 
+    # Only used by build_key_version 3, not necessary for earlier versions
+    hash = Column(Unicode(32), default=None)
+
     @staticmethod
     def _get_build_key_version():
         # Uses local import to make sure BuildKey is initialized
@@ -258,8 +261,15 @@ def build_path(self, conda_store):
         build the environment
 
         """
+        # Uses local import to make sure BuildKey is initialized
+        from conda_store_server import BuildKey
+
+        if BuildKey.current_version() < 3:
+            namespace = self.environment.namespace.name
+        else:
+            namespace = ""
+
         store_directory = os.path.abspath(conda_store.store_directory)
-        namespace = self.environment.namespace.name
         res = (
             pathlib.Path(
                 conda_store.build_directory.format(
@@ -285,6 +295,18 @@ def environment_path(self, conda_store):
         path
 
         """
+        # Uses local import to make sure BuildKey is initialized
+        from conda_store_server import BuildKey
+
+        # This is not used with v3 because the whole point of v3 is to avoid any
+        # dependence on user-provided variable-size data on the filesystem and
+        # by default the environment path contains the namespace and the
+        # environment name, which can be arbitrary large. By setting this to
+        # None, we're making it clear that this shouldn't be used by other
+        # functions, such as when creating symlinks
+        if BuildKey.current_version() >= 3:
+            return None
+
         store_directory = os.path.abspath(conda_store.store_directory)
         namespace = self.environment.namespace.name
         name = self.specification.name
@@ -317,11 +339,11 @@ def build_key(self):
         return BuildKey.get_build_key(self)
 
     @staticmethod
-    def parse_build_key(key):
+    def parse_build_key(conda_store: "CondaStore", key: str):  # noqa: F821
         # Uses local import to make sure BuildKey is initialized
         from conda_store_server import BuildKey
 
-        return BuildKey.parse_build_key(key)
+        return BuildKey.parse_build_key(conda_store, key)
 
     @property
     def log_key(self):
diff --git a/conda-store-server/conda_store_server/server/views/registry.py b/conda-store-server/conda_store_server/server/views/registry.py
index b6dd323d5..1325eb02d 100644
--- a/conda-store-server/conda_store_server/server/views/registry.py
+++ b/conda-store-server/conda_store_server/server/views/registry.py
@@ -103,7 +103,7 @@ def get_docker_image_manifest(conda_store, image, tag, timeout=10 * 60):
     else:
         build_key = tag
 
-    build_id = orm.Build.parse_build_key(build_key)
+    build_id = orm.Build.parse_build_key(conda_store, build_key)
     if build_id is None:
         return docker_error_message(schema.DockerRegistryError.MANIFEST_UNKNOWN)
 
diff --git a/conda-store-server/conda_store_server/storage.py b/conda-store-server/conda_store_server/storage.py
index 4efb4765f..efddf7bd7 100644
--- a/conda-store-server/conda_store_server/storage.py
+++ b/conda-store-server/conda_store_server/storage.py
@@ -244,5 +244,12 @@ def get_url(self, key):
 
     def delete(self, db, build_id, key):
         filename = os.path.join(self.storage_path, key)
-        os.remove(filename)
+        try:
+            os.remove(filename)
+        except FileNotFoundError:
+            # The DB can contain multiple entries pointing to the same key, like
+            # a log file. This skips files that were previously processed and
+            # deleted. See LocalStorage.fset and Storage.fset, which are used
+            # for saving build artifacts
+            pass
         super().delete(db, build_id, key)
diff --git a/conda-store-server/conda_store_server/worker/tasks.py b/conda-store-server/conda_store_server/worker/tasks.py
index 9c601b1c3..80cd6db62 100644
--- a/conda-store-server/conda_store_server/worker/tasks.py
+++ b/conda-store-server/conda_store_server/worker/tasks.py
@@ -262,7 +262,8 @@ def task_update_environment_build(self, environment_id):
         conda_prefix = environment.current_build.build_path(conda_store)
         environment_prefix = environment.current_build.environment_path(conda_store)
 
-        utils.symlink(conda_prefix, environment_prefix)
+        if environment_prefix is not None:
+            utils.symlink(conda_prefix, environment_prefix)
 
         if conda_store.post_update_environment_build_hook:
             conda_store.post_update_environment_build_hook(conda_store, environment)
diff --git a/conda-store-server/tests/test_actions.py b/conda-store-server/tests/test_actions.py
index de9419548..33d39bf6d 100644
--- a/conda-store-server/tests/test_actions.py
+++ b/conda-store-server/tests/test_actions.py
@@ -331,7 +331,8 @@ def test_add_lockfile_packages(
     [
         (False, 0),  # invalid
         (False, 1),  # long (legacy)
-        (False, 2),  # short (default)
+        (False, 2),  # shorter hash (default)
+        (False, 3),  # hash-only (experimental)
         (True, 1),  # build_key_version doesn't matter because there's no lockfile
     ],
 )
@@ -350,14 +351,14 @@ def test_api_get_build_lockfile(
             TraitError,
             match=(
                 r"c.CondaStore.build_key_version: invalid build key version: 0, "
-                r"expected: \(1, 2\)"
+                r"expected: \(1, 2, 3\)"
             ),
         ):
             conda_store.build_key_version = build_key_version
         return  # invalid, nothing more to test
     conda_store.build_key_version = build_key_version
     assert BuildKey.current_version() == build_key_version
-    assert BuildKey.versions() == (1, 2)
+    assert BuildKey.versions() == (1, 2, 3)
 
     # initializes data needed to get the lockfile
     specification = simple_specification_with_pip
@@ -436,14 +437,16 @@ def lockfile_url(build_key):
             )
         elif build_key_version == 2:
             build_key = "c7afdeff-1699156450-12345678-this-is-a-long-environment-name"
+        elif build_key_version == 3:
+            build_key = "c1f206a26263e1166e5b43548f69aa0c"
         else:
             raise ValueError(f"unexpected build_key_version: {build_key_version}")
         assert type(res) is RedirectResponse
         assert key == res.headers["location"]
         assert build.build_key == build_key
         assert BuildKey.get_build_key(build) == build_key
-        assert build.parse_build_key(build_key) == 12345678
-        assert BuildKey.parse_build_key(build_key) == 12345678
+        assert build.parse_build_key(conda_store, build_key) == 12345678
+        assert BuildKey.parse_build_key(conda_store, build_key) == 12345678
         assert lockfile_url(build_key) == build.conda_lock_key
         assert lockfile_url(build_key) == res.headers["location"]
         assert res.status_code == 307
diff --git a/docusaurus-docs/community/policies/backwards-compatibility.md b/docusaurus-docs/community/policies/backwards-compatibility.md
index 068b12f3f..f243f31b7 100644
--- a/docusaurus-docs/community/policies/backwards-compatibility.md
+++ b/docusaurus-docs/community/policies/backwards-compatibility.md
@@ -222,6 +222,13 @@ objects as public if there is an explicit need to do so. Keeping code private by
 default limits the public API that the conda-store project developers are
 committing to supporting.
 
+### Build keys
+
+conda-store ships with several build key versions. The build key determines the
+location of environment builds and build artifacts. Build key versions marked as
+experimental can be changed at any time, see `BuildKey` and the FAQ for more
+information.
+
 #### Deprecating Python APIs
 
 Under exceptional circumstances such as a serious security vulnerability which
diff --git a/docusaurus-docs/conda-store/references/configuration-options.md b/docusaurus-docs/conda-store/references/configuration-options.md
index bd23525b3..fc9900fa5 100644
--- a/docusaurus-docs/conda-store/references/configuration-options.md
+++ b/docusaurus-docs/conda-store/references/configuration-options.md
@@ -73,7 +73,7 @@ store_directory, namespace, name. The default will put all
 environments in the same namespace within the same directory.
 
 `CondaStore.build_key_version` is the [build key version](#build-key-versions)
-to use: 1 (long, legacy), 2 (short, default).
+to use: 1 (long, legacy), 2 (shorter hash, default), 3 (hash-only, experimental).
 
 `CondaStore.validate_specification` callable function taking
 `conda_store` and `specification` as input arguments to apply for
diff --git a/docusaurus-docs/conda-store/references/faq.md b/docusaurus-docs/conda-store/references/faq.md
index 356d13548..a08b86adf 100644
--- a/docusaurus-docs/conda-store/references/faq.md
+++ b/docusaurus-docs/conda-store/references/faq.md
@@ -94,22 +94,78 @@ It consists of:
 3. the id of a build
 4. the environment name.
 
-The version 2 format is now the default. Environments created using the version
-1 format will continue to be accessible in the UI, but new builds will use the
-version 2 format. No changes are needed for existing deployments of conda-store.
+However, version 2 build paths don't solve the problem completely because they
+include user-provided data, like the environment name, and that data can be
+arbitrarily large.
 
-There is no real reason to use the version 1 format anymore, but it can be
-explicitly set via the config:
+To solve this problem, version 3 was introduced, which will always have the same
+size. It looks like this:
+
+```bash
+64a943764b70e8fe181643404894f7ae
+```
+
+:::warning
+Version 3 is experimental and can be changed at any time.
+:::
+
+It's a truncated SHA-256 hex digest, which is calculated based on:
+
+- namespace name
+- specification hash (also SHA-256)
+- build timestamp
+- build id.
+
+See `BuildKey._version3_experimental_fmt` for details.
+
+:::note
+When version 3 is used, `Build.build_path` will not include the namespace name,
+because it's not fixed size, so all builds will be placed right into
+`CondaStore.store_directory`.
+
+Additionally, `CondaStore.environment_directory` will be completely ignored, so
+no symlinks connecting an environment name to its corresponding build will be
+created, because the environment directory format also includes variable-size
+data (the namespace and environment names).
+
+For context, these symlinks are created because that's how conda is usually
+used: each environment name points to a particular directory on the filesystem,
+and symlinks connect this directory to the current build.
+
+In the following example, which uses the version 2 format, there are two
+environments in the `default` namespace: `test` and `test2`. The former points
+to build 3 and the latter points to build 2:
 
-```python
-c.CondaStore.build_key_version = 1
 ```
+$ ls -l ~/.conda-store/state/default/envs
+test -> /home/user/.conda-store/state/default/b3109fbf-1710602415-3-test
+test2 -> /home/user/.conda-store/state/default/2aad045f-1710602357-2-test2
+```
+
+The lack of symlinks doesn't prevent server artifacts from being generated,
+which are available for download via the UI (lockfiles, archives, etc.), because
+those rely on storage or use the database.
 
-The version 2 format can also be explicitly set if needed (this is the same as
-the default):
+But it does impact conda integration or tools that rely on it, like when
+conda-store is used with JupyterLab as part of a Nebari deployment. Without
+environment symlinks, there'll be no way to tell conda where to look for
+environments, which is done by setting `envs_dirs` in `.condarc`, so `conda env
+list` will return nothing and no environments will show up in JupyterLab.
+:::
+
+The version 2 format is the default because it supports environment symlinks and
+doesn't usually run into path length limitations. If you do experience problems
+with the latter and don't need the former, then consider using the version 3
+format.
+
+No matter what format you choose, environments that were previously created
+using other version formats will be accessible in the conda-store web UI.
+
+There is no real reason to use the version 1 format anymore, but any version can
+be explicitly set via the config, for example:
 
 ```python
-c.CondaStore.build_key_version = 2
+c.CondaStore.build_key_version = 1
 ```
 
 ## Long paths on Windows