It feels like blow after blow for consumers lately. Valve has already confirmed Steam Deck stock issues due to rising RAM and storage costs, and there are also rumors of consoles being delayed over similar price concerns.
Now, to add to that, Western Digital, who have been around for 55 years and is one of the leading providers of HDDs and SSDs, has confirmed through its Chief Executive Officer, Irving Tan, that it has already sold out of hard drives for 2026.
Keeping in mind, we’re just two and a half months into 2026.
Hard drives locked in by data center demand
Western Digital CEO Irving Tan has confirmed that the company has “pretty much sold out for calendar 2026.” Thanks to a transcript provided by Investing.com for the company’s Q2 2026 earnings call. Western Digital went on to confirm they have firm purchase orders in place, locking in most of its supply throughout the year, with agreements already signed through to 2028 for one customer.
As we highlighted, we’re pretty much sold out for calendar 2026. We have firm POs with our top seven customers.
Irving Tan - Western Digital CEO
On paper, the move makes sense, even if it does not feel great for consumers. Western Digital’s revenue is mostly driven by its Cloud business, which accounts for 89% of total revenue, while its consumer segment makes up just 5%.
And we’ve also established LTAs with two of them for calendar 2027 and one of them for calendar 2028. Obviously, these LTAs have a combination of volume of exabytes and price
Irving Tan - Western Digital CEO
LTAs referring to long-term agreements here.
AI is largely to thank for this situation. AI infrastructure is pushing companies to scale en masse, securing storage deals years in advance, which in turn reduces availability for retail and other markets.
Hard drives remain one of the most cost-effective purchases for large-scale storage, especially compared to SSDs, which have become more expensive due to the same AI-driven demand, becoming more than 50% expensive in some cases.
As a result of these long-term deals and supply constraints, consumer HDD pricing has increased by more than 45% since September 2025.
Storage is not the only area being affected. RAM is seeing similar pressure, as multi-year agreements continue to prioritize AI-focused demand over traditional consumer markets.
Perhaps more annoyingly, prior to the AI boom, Kris Sennesael, Chief Financial Officer for Western Digital, confirmed that the price per terabyte was coming down year-over year by 10%, stating:
“…the cost per terabyte was coming down on or about 10% on a year-over-year basis.
Kris Sennesael - Chief Financial Officer for Western Digital
It’s not that Western Digital is deliberately pivoting away from consumers. From a business perspective, prioritizing its largest source of demand makes sense.
The issue is that consumers across multiple industries are now feeling the pressure of long-term agreements that effectively lock up large portions of available supply.
Are you feeling the impact of rising HDD and storage prices? Let us know your thoughts in the comments and make sure to take part in our poll below:
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