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Yahoo
07-05-2025
- Business
- Yahoo
Seagate Bets On Mega-Sized, Sustainable Drives As AI Sparks Record Data Demand
Seagate Technology Holdings (NASDAQ:STX) is amid efforts to develop a 100-terabyte hard drive by 2030. Seagate's chief commercial officer, BS Teh, told CNBC on Wednesday that the data storage firm aims to launch a drive with about three times the capacity of its top-notch hard drives by 2030. The largest hard disk drive Seagate currently produces is the 36-terabyte Exos M model. Also Read: Western Digital Refocuses Post-SanDisk Spin-Off As Analyst Highlights AI-Led HDD Growth Teh expressed conviction in strong demand, underlining the need for the 100-terabyte hard drive. Teh also said Seagate is amid efforts to counter climate concerns surrounding AI's energy demands. Teh expressed conviction in hard disk drive prospects, citing it as a much more sustainable device technology. Big Tech's 2025 AI infrastructure investments included Inc.'s (NASDAQ:AMZN) $100 billion, followed by Microsoft Corp (NASDAQ:MSFT) and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) at $80 billion each, and Meta committing over $60 billion. Microsoft expects to spend $80 billion on data centers in fiscal 2025. February reports indicated Meta Platforms, Inc. (NASDAQ:META) is in talks to build an AI data center campus that could exceed $200 billion in costs. Seagate Technology Holdings stock gained close to 9% year-to-date. It reported third-quarter sales of $2.16 billion (versus $1.66 billion Y/Y), missing the analyst estimate of $2.31 billion. It reported adjusted earnings per share of $1.90, missing the analyst estimate of $2.09. Seagate expects fourth-quarter revenue of $2.25 billion-$2.55 billion, versus the $2.43 billion estimate, and adjusted earnings of $2.20-$2.60 per share, versus the $2.20 analyst estimate. Price Action: STX stock is up 1.16% at $94.99 at the last check on Wednesday. Read Next: Photo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Seagate Bets On Mega-Sized, Sustainable Drives As AI Sparks Record Data Demand originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
CNBC
07-05-2025
- Business
- CNBC
Tech giant Seagate sees hard drive capacity tripling by 2030 on booming AI demand
Seagate Technology's headquarters in Scotts Valley, California. Data storage firm Seagate is working to develop a 100-terabyte hard drive by 2030, touting blistering demand from data centers for the 70-year-old technology in the artificial intelligence boom. BS Teh, Seagate's chief commercial officer, told CNBC that the company is aiming to launch such a drive — which would have about three times the capacity of the firm's top-of-the-line hard drives — by 2030. The largest hard disk drive Seagate currently produces is the 36-terabyte Exos M model, which it launched in January. "You may be thinking, 'Who would need it?'" Teh said, referring to the idea of a 100-terabyte hard drive. "Well, plenty." "I think there's definitely strong demand," he added. "This is a key enabler for the industry to be able to deliver the storage capacity that the market needs, because there's no other technology that's able to produce this capacity of storage technology to meet the growth that the market needs." Seagate has been touting itself as more of an AI player in recent years amid the rise of foundational models like those being developed by OpenAI, Microsoft and Google . In the computer hardware market, the AI boom has largely benefited players like Nvidia which make the graphics processing units needed for training and running AI models. But the boom in data centers comes with implications for the environment. Data centers require significant amounts of power to run. According to the International Energy Agency, a single ChatGPT query uses up an average 2.9 watt-hours per request — nearly 10 times the amount required for a typical Google search — meaning if ChatGPT was used in the 9 billion internet searches done each day, almost 10 terawatt-hours of additional electricity a year would be required. Teh explained that Seagate is working to address climate concerns surrounding AI's energy demands by increasing storage density on its hard drives and ensuring its manufacturing is underpinned by renewable energy. "We focus on what we can influence, and what we can influence comes down to how we have a sustainable way to manufacture the product," Teh said. "We have a target to make sure that all of our factories are using renewable energy to manufacture the product." "With the product itself, we design it to have lower power per terabyte, or to have higher density of the device itself, such that when you actually integrate that product into your data center, you require less space, less power, less everything, because you're using your fewer drives to fulfill that capacity," he added. It's worth highlighting that Seagate faces competition from other technologies — not least from solid-state drives, which use flash memory chips rather than magnetic platters to store data electronically. However, Teh insists hard disk drive is "a much more sustainable device technology" than solid-state drives in terms of the embodied carbon.
