Hard drives already sold out for this year – AI to blame
The Register
February 20, 2026
AI-Generated Deep Dive Summary
Hard drive manufacturers like Seagate and Western Digital have reported that their production for 2026 is already fully sold out, with hyperscalers—major cloud providers—and AI-driven demand being the primary culprits. These tech giants are snapping up high-capacity storage solutions to support their expanding cloud infrastructure and AI training operations, leaving little room for other buyers in the market. Western Digital revealed that they have firm orders from their top seven customers extending into 2027 and beyond, while Seagate confirmed that its nearline capacity is fully allocated through 2026, with limited availability expected for the first half of 2027.
The shortage stems from the growing demand for hard drives in applications requiring large-scale data storage at low costs, such as cloud storage and AI systems. While traditional PC and laptop markets have seen a decline in HDD usage, manufacturers are focusing on producing larger-capacity drives—like Western Digital’s upcoming 44TB drives—to meet the needs of hyperscalers and AI-driven industries. This shift has left mid-sized businesses and enterprise-level server markets struggling to secure storage solutions, as manufacturers prioritize high-volume, predictable demand from major cloud providers.
Experts warn that this trend will continue to strain supply chains, with shortages of memory, storage, and even CPU silicon expected to persist for the foreseeable future. While hyperscalers like Amazon, Google, and Microsoft are unaffected due to their locked-in agreements, smaller businesses relying on standard enterprise servers and storage solutions face significant challenges. The overall impact highlights how AI’s insatiable demand for resources is reshaping the tech landscape, leaving many wondering if there will ever be enough supply to meet future needs.
Verticals
tech
Originally published on The Register on 2/20/2026