As per a research report issued by CITIC Securities, the global demand for data center storage has witnessed a substantial surge since 2023, largely attributed to the proliferation of AI technology. When juxtaposed with SSDs, HDDs present considerable benefits in terms of storage capacity and cost-efficiency. This makes them the go-to option for near-line storage among cloud service providers operating in Europe and the United States. Presently, two American-listed entities, Seagate Technology and Western Digital, dominate the global HDD production landscape, commanding an 80% share of the total output capacity. Following a market slump in 2021, companies have exhibited a restrained inclination towards short-term production expansion. Given that the expansion cycle can span anywhere from 12 to 18 months, starting from 2024, the data center HDD market has embarked on an upswing phase. Major players in the industry are now experiencing product lead times and order visibility that stretch beyond a year. The industry's tight supply-demand equilibrium is anticipated to hold steady until the latter half of 2026.