HDD prices spike as AI infrastructure and China's PC push collide — hard drives record biggest price increase in eight quarters, suppliers warn pressure will continue

HDD prices have surged due to increased demand from China's PC market and U.S. data centers driven by AI workloads. The rise in HDD contract prices in Q4 2025 is the sharpest in eight quarters, with suppliers warning of ongoing pressure. Despite the advantages of SSDs, concerns around long-term data retention and cost efficiency have led to a renewed push for HDDs. The intersection of AI infrastructure growth and HDD demand highlights the evolving dynamics in the computing supply chain. The market may continue to face pricing challenges as AI infrastructure investment accelerates and HDD production capacity struggles to keep up.