AI data centers are causing hard drive prices to remain elevated as demand outpaces supply. Western Digital has exhausted its 2026 production capacity, with enterprise customers consuming nearly all available drives.

During Western Digital's Q2 earnings call, CEO Irving Tan revealed that 89% of the company's revenue comes from cloud-based enterprises, leaving minimal capacity for consumer drives. The company has agreements extending through 2028 with major clients, effectively locking up production for years.

With hard drive prices already at two-year highs and supply constrained by AI infrastructure needs, consumers face a tight market. Those needing additional storage should consider purchasing sooner rather than later, as the usual economics of supply and demand suggest prices will remain elevated or increase further.