AI Adoption Boosts Cloud Storage Demand: Survey

A recent global survey conducted by Recon Analytics and commissioned by Seagate Technology highlights the growing impact of artificial intelligence (AI) on data storage needs. Business leaders across 15 industries and 10 countries anticipate that the widespread adoption of AI applications will generate massive volumes of data, driving an unprecedented surge in demand for data storage—especially cloud-based storage solutions.

The study found that hard drives remain essential for cloud service providers, who rely on their scalability and cost-efficiency, with 89% of data stored by leading cloud providers housed on hard drives, according to analyst firm IDC. The report reveals that nearly two-thirds (61%) of respondents from companies utilizing cloud as their primary storage medium expect their cloud storage needs to increase by more than 100% over the next three years.

Key Survey Insights:

• 72% of respondents currently use AI in their operations.
• 61% of businesses using cloud storage predict over 100% growth in cloud-based storage over the next three years.
• Storage ranks as the second most important aspect of AI infrastructure, following Security.
• Among AI adopters, 90% believe that longer data retention enhances AI outcomes.
• 88% of participants recognize the need for more data storage to adopt Trustworthy AI, emphasizing the importance of long-term data retention.

Roger Entner, founder and lead analyst of Recon Analytics, remarked, “The results clearly signal a coming surge in data storage demand, with hard drives standing out as the preferred solution. As businesses aim to store more AI-driven data in the cloud, it’s clear that cloud services are poised for a second wave of growth.”

The survey emphasizes a trend towards organizations retaining data longer to ensure the integrity and accuracy required for training AI models. This move is crucial for fostering more reliable and effective AI outcomes.

BS Teh, Chief Commercial Officer at Seagate, noted, “Trustworthy AI is essential for the mainstream adoption of AI technologies. With most respondents acknowledging the need to store data longer to improve AI outcomes, we are focusing on advancing areal density innovation to significantly increase storage capacity in our HAMR-based hard drives. Our goal is to more than double per-platter storage capacity in the coming years.”