AI Inference Surge Leads to Nearline HDD Shortages, SSDs Set to Gain

New research by TrendForce reveals that the surge in inference AI applications is causing a significant strain on the global storage ecosystem. The demand for nearline HDDs has skyrocketed, resulting in supply shortages and lead times stretching from weeks to over a year. This scarcity is compelling cloud service providers (CSPs) to reevaluate their tiered storage architectures.

Nearline HDDs are specialized hard drives tailored for extensive data storage, commonly utilized in data centers and cloud storage facilities. The term "nearline" signifies that these drives are not as rapid as "hot" or "online" drives meant for immediate access but are notably faster than "offline" storage options like magnetic tape. These drives are engineered to strike a balance between high capacity, reliability, and cost-efficiency, making them ideal for applications such as data backups, archival storage, and housing large files that do not necessitate instant access but should remain easily accessible.

AI-Driven Pressure on Data Storage

Historically, HDDs have been the go-to choice for storing cold data (e.g., backups and archives) due to their affordability. However, with the current supply constraints, CSPs are contemplating SSDs as viable alternatives, as highlighted by TrendForce. While SSDs are commonly used for hot and warm data, the scarcity is prompting some CSPs to contemplate deploying them for cold data storage despite the higher costs involved.

TrendForce identifies Quad-Level Cell (QLC) SSDs as promising substitutes. These SSDs not only deliver superior performance and approximately 30% lower power consumption compared to HDDs but also offer higher density. TrendForce predicts a potential exponential growth in shipments of high-capacity QLC SSDs in 2026.

Nonetheless, the transition is not without its challenges. TrendForce warns that if CSPs intend to utilize QLC SSDs for cold data storage, they must consider adjustments to data management algorithms, compatibility across software stacks, and precise calculations of total cost ownership.

AI Leads to Critical Shift

For readers of eeNews Europe, this development underscores a pivotal transformation in data infrastructure driven by the expansion of AI. It signifies emerging opportunities for storage suppliers while underscoring the hurdles CSPs encounter in meeting the escalating demand for storage solutions.