A seismic shift in cloud storage requirements is on the horizon as artificial intelligence (AI) adoption drives organisations to generate and retain unprecedented volumes of data. A recent global survey by Recon Analytics, commissioned by Seagate Technology, reveals that 61 per cent of businesses using cloud-based storage anticipate their storage needs will more than double by 2028, underlining the profound impact AI is having on data management infrastructure.
The survey, which spanned 15 industry sectors across ten countries, highlights a clear consensus among business leaders: AI applications demand not only more data but also longer retention periods to enhance the reliability and accuracy of AI models. This trend places cloud storage providers at the forefront of a second growth wave, with hard disk drives (HDDs) emerging as the preferred medium for mass data storage due to their cost-efficiency and scalability.
Roger Entner, founder and lead analyst of Recon Analytics, emphasised the pivotal role of cloud services in accommodating this shift. “The survey results point to a surge in demand for data storage, with hard drives emerging as the clear winner,” he said. “As AI-driven data increasingly migrates to the cloud, service providers are positioned to capitalise on a new era of growth.”
The survey also provides valuable insights into the priorities of businesses integrating AI into their operations. Security emerged as the top infrastructure concern, with storage ranking second, followed by data management, network capacity, and compute power. Among respondents currently leveraging AI, 90 per cent affirmed that retaining data for longer periods enhances the quality of AI outcomes. This aligns with the broader sentiment that “trustworthy AI” is essential for its widespread adoption, with 88 per cent agreeing that longer retention periods are critical to maintaining data integrity.
AI’s reliance on high-quality data has far-reaching implications for storage providers, particularly as businesses seek to safeguard data for extended periods to refine algorithms and ensure robust model training. BS Teh, Chief Commercial Officer at Seagate, noted the industry’s challenge to meet this demand through technological innovation. “With the vast majority of survey respondents saying they need to store data for longer periods to improve AI outcomes, we are focused on increasing storage capacity through advancements in areal density,” Teh said.
Seagate’s work on heat-assisted magnetic recording (HAMR) technology exemplifies the type of innovation required to keep pace with growing demand. By doubling per-platter storage capacity in hard drives, the company aims to provide the infrastructure necessary to sustain AI-driven data growth.
The findings reflect a broader evolution in how organisations value and manage their data. Beyond immediate operational benefits, the capacity to store vast quantities of data for extended periods is increasingly viewed as a strategic imperative for competitive advantage in an AI-driven future.
Recon Analytics’ findings highlight the critical interplay between data infrastructure and AI progress. As AI technologies evolve, the need for scalable, secure, and cost-effective storage solutions will become even more pronounced. The challenge for organisations lies in aligning their infrastructure investments with the demands of rapidly expanding AI ecosystems, where data retention and security are as essential as computational power.
With businesses expecting exponential growth in their storage needs, the next few years will test the resilience and innovation of the storage industry. However, as the survey suggests, those who can adapt and innovate stand to play a central role in shaping the future of AI-driven enterprise.
