Morgan Stanley said in a report released on Aug. 3 that June HDD and SSD data continued to point to strong demand from data centers. Citing TSR estimates, the bank said enterprise SSD shipment capacity for data center use is projected to reach 525 exabytes in 2026, up 100% year over year, while nearline HDD shipment capacity is expected to reach 1,845 exabytes, up 30.4%.
The report said June data center enterprise SSD shipment capacity came in at 46.33 exabytes, rising 124.5% from a year earlier and 12.0% from the prior month. Unit shipments of enterprise SSDs reached 6.35 million, up 41.1% year over year and 8.9% month over month. Morgan Stanley said the mix shift toward higher-capacity products should keep shipment-capacity growth ahead of unit growth.
On the HDD side, June nearline HDD production totaled 7.03 million units, up 12.3% year over year and down 0.6% from the previous month. TSR expects nearline HDD production to reach 84.39 million units in 2026, up 12.8%. The report also warned that further nearline HDD output increases could be constrained by head supply and testing capacity. Overall, Morgan Stanley said AI spending and data center capital expenditure are still driving storage-capacity demand, while supply-chain bottlenecks are spreading from end devices to key component links.
BlockBeats reported on Aug. 3 that Morgan Stanley said in a new report June HDD and SSD data continued to show strong demand from data centers.
According to the report, TSR estimates that enterprise SSD shipment capacity for data center use will reach 525EB in 2026, up 100% year over year. Shipment capacity for data center nearline HDDs is projected to reach 1,845EB, up 30.4%.
Enterprise SSD shipment capacity and unit shipments both rose in June
The report said June shipment capacity for data center enterprise SSDs reached 46.33EB, up 124.5% from a year earlier and 12.0% from the previous month. Over the same period, enterprise SSD unit shipments totaled 6.35 million, rising 41.1% year over year and 8.9% month over month.
Morgan Stanley said shipment-capacity growth for SSDs should continue to outpace unit-shipment growth as higher-capacity products account for a larger share of the mix.
Nearline HDD output increased, but future expansion may face limits
On the HDD side, June nearline HDD production came in at 7.03 million units, up 12.3% year over year and slipping 0.6% from the prior month. TSR expects nearline HDD production to reach 84.39 million units in 2026, up 12.8%.
The report added that further increases in nearline HDD production could be constrained by magnetic head supply and testing capacity.
AI and data center capex remain key demand drivers
Overall, Morgan Stanley said AI and data center capital spending are still driving demand for storage capacity, while supply-chain bottlenecks are extending from end devices to critical component segments.
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