Hi, and thanks for reaching out to the community!
This is possible, and I think one of the first things you should consider is wether there is a requirement to be able to edit, collaborate in real-time and save the files directly in the browser. If this is the case, I would use the previously mentioned Graph API to fetch the files into runtime datasources. If there is only a need to store, categorise, view and download files, this is not necessary.
Depending on how complex the structure needs to be, it can be built by adding an object class for the folders and sub folders, and connect them to each other/the files by using references. As an example, a file object can reference a subfolder [file.folder], the subfolder can reference a parent folder [folder.parentFolder.folder] and so on.
I hope this answers your question. If not, please elaborate on your case and we’ll figure it out! 