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AI-driven data growth to boost demand for cloud storage, says Seagate survey

AI adoption drives data storage growth, with 53% of Singapore firms expecting cloud storage needs to double by 2028, says Seagate survey.

A recent global survey conducted by Recon Analytics and commissioned by Seagate Technology reveals that artificial intelligence (AI) is set to drive an unprecedented surge in data creation, resulting in a significant rise in demand for cloud-based storage solutions. The survey gathered insights from business leaders across 15 industries and 10 countries, including Singapore.

The study highlights that companies worldwide are preparing for a dramatic increase in cloud storage needs, with over 61% of global respondents expecting their cloud storage requirements to grow by more than 100% by 2028. In Singapore, this figure stands at 53%, underscoring the regionโ€™s growing reliance on cloud solutions for managing data volumes generated by AI technologies.

Hard drives as the backbone of cloud storage

Hard drives play a critical role in supporting cloud storage infrastructure, offering scalability and cost efficiencies measured in terabytes per dollar. According to analyst firm IDC, 89% of data stored by leading cloud service providers relies on hard drives. As AI adoption accelerates, so does the volume of data stored in the cloud, positioning hard drives as a key enabler of this growth.

โ€œThe survey results generally point to a coming surge in demand for data storage, with hard drives emerging as the clear winner,โ€ said Roger Entner, founder and lead analyst of Recon Analytics. โ€œWhen you consider that the business leaders we surveyed intend to store more and more of this AI-driven data in the cloud, it appears that cloud services are well-positioned to ride a second growth wave.โ€

AI adoption and the need for longer data retention

The survey revealed several key insights:

  • 62% of Singapore respondents currently use AI, compared to a higher global average of 72%.
  • Globally, storage ranks as the second most important component of AI infrastructure, following security.
  • In Singapore, 85% of businesses using AI agree that retaining data for longer periods improves the quality of AI outcomes, close to the global average of 90%.
  • 88% of respondents globally believe that the adoption of Trustworthy AI necessitates storing more data for extended durations, with Singapore matching this trend at 90%.

These findings highlight a growing shift towards longer data retention periods to ensure data integrity and optimise AI model training. Trustworthy AI, which emphasises accuracy and reliability, is seen as a cornerstone for broader AI adoption.

โ€œTrustworthy AI is really the key to enabling mainstream adoption of AI,โ€ stated BS Teh, Chief Commercial Officer of Seagate. โ€œWith the vast majority of survey respondents saying they need to store data for longer periods to improve quality outcomes of AI, weโ€™re focused on areal density innovation needed to increase storage capacity for each platter in our HAMR-based hard drives. We have a clear pathway to more than double per-platter storage capacity over the next few years.โ€

Preparing for a data-driven future

As organisations increasingly adopt AI, their need for robust cloud-based storage solutions continues to grow. The Seagate survey underscores the pivotal role of hard drives in meeting these demands, positioning them as essential for scalable and cost-effective data storage. Businesses in Singapore and across the globe are gearing up for a future shaped by AI-driven data creation, prioritising security, storage, and trustworthy AI as key pillars for growth.

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