Sixty-one percent of respondents expect their organization’s cloud-based storage – underpinned by hard drives – will increase by more than 100% by 2028

According to a recent, global Recon Analytics survey1 commissioned by Seagate Technology, business leaders from across 15 industry sectors and 10 countries expect that adoption of artificial intelligence (AI) applications will generate unprecedented volumes of data, driving a boom in demand for data storage, in particular cloud-based storage.

With hard drives delivering scalability relative to terabyte-per-dollar cost efficiencies, cloud service providers rely on hard drives to store mass quantities of data. Recently, analyst firm IDC estimated that 89% of data stored by leading cloud service providers is stored on hard drives2. Now, according to this Recon Analytics study, nearly two-thirds of respondents (61%) from companies that use cloud as their leading storage medium expect their cloud-based storage to grow by more than 100% over the next 3 years.

“The survey results generally point to a coming surge in demand for data storage, with hard drives emerging as the clear winner,” remarked Roger Entner, founder and lead analyst of Recon Analytics. “When you consider that the business leaders we surveyed intend to store more and more of this AI-driven data in the cloud, it appears that cloud services are well-positioned to ride a second growth wave.”

Key Findings:

  • 72% surveyed say they use AI today.
  • 61% of respondents who predominately use cloud storage say their cloud-based storage will increase by over 100% over the next 3 years.
  • Storage ranks as the second most important component of AI infrastructure, with Security ranking #1.
    • In order of importance: Security, Storage, Data Management, Network Capacity, Compute, Regulations, LLM Viability, Energy
  • Of those businesses who’ve adopted AI technology, 90% believe longer data retention improves the quality of AI outcomes.
  • 88% of respondents who use AI today believe adoption of Trustworthy AI requires an increased need to store more data for longer periods of time.

Survey results substantiate a trend toward organizations retaining data for longer periods of time to ensure data integrity needed to optimally train AI models. In order for AI innovation and adoption to continue, AI results and outcomes need to become increasingly accurate.

“Trustworthy AI is really the key to enabling mainstream adoption of AI,” said BS Teh, Chief Commercial Officer of Seagate. “With the vast majority of survey respondents saying they need to store data for longer periods of time to improve quality outcomes of AI, we’re focused on areal density innovation needed to increase storage capacity for each platter in our HAMR-based hard drives. We have a clear pathway to more than double per-platter storage capacity over the next few years.”

To view the comprehensive survey results and analysis, visit Recon Analytics.

About Seagate Technology

Seagate is a leader in mass-capacity data storage. We’ve delivered more than four and a half billion terabytes of capacity over the past four decades. We make storage that scales, bringing trust and integrity to innovations that depend on data. In an era of unprecedented creation, Seagate stores infinite potential. To learn more about how Seagate leads storage innovation, visit www.seagate.com and our blog, or follow us on X, Facebook, LinkedIn, and YouTube.

©2025 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are trademarks or registered trademarks of Seagate Technology LLC in the United States and/or other countries. All other trademarks or registered trademarks are the property of their respective owners.

_______________ 1 The November 2024 survey sampled more than 1,000 business decision-makers who actively work in a storage infrastructure role with companies reporting $10+ million in annual revenue and that have already adopted AI or plan to adopt AI within the next three years. The survey results provide insights on the current impacts of AI application usage on infrastructure priorities as well as data retention and management dynamics. Results also explore respondents’ expectations for how increased AI adoption will impact infrastructure needs over the next three years. 2 According to the 2024 IDC Cloud Infrastructure Index report.

Andrea Kirby, andrea.l.kirby@seagate.com Karin Taylor, karin.h.taylor@seagate.com

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