Here you will find the S7-1200 memory concept as described in the S7-1200 Controller manual:

http://support.automation.siemens.com/WW/view/en/36932465
The CPU provides a variety of features to ensure that your user program and data are properly retained.
Load memory is non-volatile storage for the user program, data and configuration. The CPU
permanently stores load memory. The size of the load memory is based on the internal load memory (ILM)
or external load memory (ELM). The CPU model determines the size of ILM, and the size of the memory
card determines the size of ELM. Refer to the technical specifications (Page 283) for more information
about your CPU.
Retentive data memory is the data memory that you configure to be retained (remain unchanged) over a
power cycle. The CPU provides for the storage of 2048 bytes of retentive data. You can specify data
values (DB and/or M memory) to be permanently saved when power is removed.
Work memory is non-volatile memory used to store the user program, data block, any forced values,
non-retentive M memory, and selected values written by the user program. The CPU model size
determines the size of the work memory.
So you can expand the externalload memory by changing the size of the memory card. But you cannot
change the work memory, as this is defined by the model of CPU you have chosen to work with.
Hope this helps,
Daniel Chartier