One excel sheet can handle 1,048,576 rows. So use multiple sheets within the same excel file: 2 sheets of 1,048,576 rows, and 1 sheet of 902,848 rows will give you 3 million rows (and so on). You can have many sub sheets in the same excel file (over 300). 300 sub sheets gives you access to 314,572,800 rows...
I don't think that Excel is the best option to deal with huge data sets. I would place it in a database. You may have Access on your computer, but you might use also other relational database systems like mysql, etc.
See gnumeric (http://www.gnumeric.org/). This software lets you to configure the number of rows beyond 1 million. Unfortunately they have only distributions for Linux.