AI Demand Boom Extends Storage Supply Contracts to Five Years

Rapid growth in generative AI and cloud computing is forcing data centers to store vast amounts of data generated by model training, inference and enterprise services, driving demand for SSD and HDD capacity. Storage suppliers including Sandisk, Seagate and Western Digital have consequently gained more stable order visibility, while the duration of supply agreements has become an important gauge of industry conditions.

Large cloud customers seeking to secure storage-device supplies have recently extended long-term agreements with SSD and HDD manufacturers. Some contracts now run for as long as five years, an industry record. Sandisk, Seagate and Western Digital said AI computing continues to drive data growth, with supply-chain visibility now extending into 2027–2029.