AI's Insatiable Storage Demand Sparks HDD Shortage And SSDs Could Be Next
We're seeing a similar plot line with AI demand compared to the crypto craze that enraptured the market a few years ago. First, GPUs became scarce and in high demand, with high prices not far behind. Next, even CPUs entered the fray, and now it's happening to storage media. Due to the large amount of data required by AI workloads, storage shortages have reared their ugly head.
"TrendForce’s latest investigations reveal that the massive data volumes generated by AI are straining the global infrastructure of data center storage. Nearline HDDs, traditionally the backbone of large-scale data storage, are now facing severe supply shortages, pushing high-performance yet higher-cost SSDs into the market spotlight," TrendForce states in a new report.
While more expensive SSDs typically were not the first choice, due to shortages of more affordable storage, they're next in the demand line. QLC SSDs in particular seem to be an area of high future shipping growth, according to an investigation by TrendForce. There can be some benefits to this to outweigh cost, starting with speed. SSDs are typically much faster than traditional hard drives, and also are more robust and less likely to fail.
SSDs also draw less power, which is always a primary concern for data centers around the world. NVMe drives such as the Samsung 9100 Pro can fetch as high as a $999 MSRP for 8TB models, however.
Part of the reason that hard drives are getting hit by a shortage is that the mainstream market has quickly changed to keep up with technology. Most consumer devices such as laptops and desktop PCs now come with NVMe or 2.5 inch SSDs, decreasing the demand for older storage media. Typical spinning hard drives often do have a larger size to cost ratio, however, an area that they still excel in.
Larger SSDs and NVMe drives typically cost significantly more than comparable hard drives. If demand spikes for them, we may see short term price increases as the AI demand gobbles up available inventory. Eventually prices may stabilize as companies focus production on faster and cheaper high capacity SSDs, which could translate to the consumer market benefitting.
For now, companies such as Western Digital are already increasing prices for HDDs with shipping delays accruing for up to 10 weeks. WD also mentioned it's using more ocean freight as opposed to the faster air services, which can explain some of the delay. The AI demand needs a lot of power, and by design a lot of data storage comes along with it impacting the overall market.
Larger SSDs and NVMe drives typically cost significantly more than comparable hard drives. If demand spikes for them, we may see short term price increases as the AI demand gobbles up available inventory. Eventually prices may stabilize as companies focus production on faster and cheaper high capacity SSDs, which could translate to the consumer market benefitting.
For now, companies such as Western Digital are already increasing prices for HDDs with shipping delays accruing for up to 10 weeks. WD also mentioned it's using more ocean freight as opposed to the faster air services, which can explain some of the delay. The AI demand needs a lot of power, and by design a lot of data storage comes along with it impacting the overall market.
