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Western Digital outlines future strategy and AI growth at Investor Day 2025

Western Digital unveils its future strategy at Investor Day 2025, highlighting AI-driven storage demand and accelerating HAMR technology development.

Western Digital has unveiled its strategic vision for the future at Investor Day 2025, ahead of the expected separation of its Flash business on 21 February 2025 (22 February 2025, GMT+8).

CEO Designate Irving Tan reaffirmed Western Digitalโ€™s position as a leader in sustainable storage solutions, highlighting the companyโ€™s commitment to delivering cutting-edge technology for hyperscalers, cloud service providers (CSPs), and original equipment manufacturers (OEMs). Tan also shared projections on the growing role of artificial intelligence (AI) in shaping the storage industry.

AI-driven demand expected to fuel HDD market growth

As AI applications continue to evolve, Western Digital anticipates significant growth in data storage needs. Tan outlined how AI-driven workloads, including text-to-image and text-to-video applications, are increasing the demand for large-scale data storage. Companies are expanding their data lakes to power AI models, leading to a projected 23% compound annual growth rate (CAGR) in HDD exabyte shipments from 2024 to 2028.

With global data generation expected to triple between 2023 and 2028, Western Digital aims to address the increasing demand for scalable and cost-effective storage solutions. The company remains committed to providing sustainable and high-capacity options that optimise total cost of ownership (TCO) for enterprise and cloud customers.

HAMR technology development gains momentum

To meet the growing storage needs of data centres, Western Digital is accelerating its development of heat-assisted magnetic recording (HAMR) technology. Tan revealed that the company is currently testing HAMR drives with two major hyperscale customers.

By combining its established ePMR and UltraSMR technologies with advancements in HAMR, Western Digital is ensuring a seamless and scalable transition for customers. The companyโ€™s approach allows businesses to plan for long-term growth while maximising value from existing and emerging storage solutions.

โ€œThe future holds tremendous opportunity, and Western Digital is well-positioned to be the leader in data storage as we meet our customersโ€™ storage needs today and into the future,โ€ said Tan. โ€œWe are not just advancing the future of HDDโ€”weโ€™re unleashing the power and value of data for enterprise and cloud customers worldwide.โ€

As Western Digital moves forward, it continues to invest in key areas such as servo-mechanics, magnetics, and systems design. The companyโ€™s expertise in physics, material sciences, and manufacturing innovation will play a crucial role in shaping new growth opportunities and advancing storage technology.

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