TSR Storage Seminar: Robust Demand for Data Center Storage is Likely to Continue

Research evidence excerpt

TSR Storage Seminar: Robust Demand for Data Center Storage is Likely to Continue

UpdateMWidening GB cost gap between Enterprise SSDs and NL HDDs: According to TSR, the

cost per GB in 2025 is estimated at $0.104 for Enterprise SSDs versus $0.0135 for NL

HDDs, implying Enterprise SSDs are 7.7x more expensive. In 2026, TSR expects Enterprise

SSD GB costs to rise sharply to $0.286, driven primarily by higher NAND flash prices,

while NL HDD GB costs increase only modestly to $0.0149. As a result, Enterprise SSDs

are projected to be 19.2x more expensive, widening the cost gap significantly. By 2030,

TSR forecasts GB costs of $0.193 for Enterprise SSDs and $0.0092 for NL HDDs, implying

a 21.0x premium for Enterprise SSDs and a further widening of the cost differential.

Rather than directly competing in data center storage, Enterprise SSDs and NL HDDs are

increasingly serving different use cases. Enterprise SSDs offer superior access speeds and

lower power consumption, while NL HDDs provide higher storage capacity at a lower cost.

In addition, as magnetic storage devices, NL HDDs are generally regarded as more reliable

than semiconductor-based SSDs for long-term data retention.

TSR expects NL HDD growth to be driven more by increases in storage capacity and

revenue than by unit shipments: TSR forecasts NL HDD shipments of 76.36mn units in

2026, generating revenue of $27,194mn, with an ASP of $356.1, total shipped capacity of

1,825EB, average capacity per drive of 23.9TB, and a cost per GB of $0.015. Compared with

the previous shipment peak in 2021, when shipments totaled 73.52mn units, revenue was

$13,794mn, ASP was $187.62, shipped capacity was 932EB, average capacity per drive was

12.7TB, and cost per GB was $0.015, unit shipment growth is relatively modest. However,