AI storage boom is keeping Seagate's hard drives spinning

Cloud operators have already claimed most of its nearline capacity through 2028

The AI infrastructure boom isn't just eating all the memory – it's also driving demand for storage, giving high-capacity hard drives a new lease of life, according to Seagate.

The storage veteran says cloud operators are buying ever more mass-capacity hardware as AI applications generate and retain growing volumes of data.

"Datacenter demand now represents approximately 90 percent of our exabyte shipments," chairman and CEO Dave Mosley told analysts during a call to discuss Seagate's Q4 and full-year results.

"Based on the long-term supply agreements in place today, the vast majority of our nearline exabytes are now allocated into calendar 2028," he said.

Back in February, Seagate warned that its production capacity of nearline drives was fully allocated for this year, and it had started accepting orders for 2027.

"Importantly, we are not seeing customers pull back on...

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