Data storage giant bullish about China market

Seagate Technology, a global leader in data storage solutions, has expressed strong confidence in China's market potential, emphasizing the transformative role of artificial intelligence in driving storage demand.

According to IDC's forecast, the compound annual growth rate of available data storage should be 17 percent from 2024 to 2028, but the amount of data generated is expected to grow by 24 percent year-on-year. It projects the global data sphere will triple in size between 2023 and 2028.

Seagate reported $2.16 billion in revenue for the first three months, with about one-third of its total sales coming from China. Seagate's deep roots in China date back over three decades, with early investments in local manufacturing and sales.

Over the years, China's technological landscape has evolved dramatically, transitioning from the early personal computer era to today's mobile-cloud and AI-driven ecosystem. "Over the period, we also have shifted from client server into the mobile cloud space. We're now moving into the next phase of the evolution, the AI era, which is going to be the most exciting of all," said Ban-seng Teh, executive vice-president and chief commercial officer of the California-based tech company, adding that, "There's a lot of optimism about the growth of business in China and also worldwide."

Looking ahead, Seagate aims to strengthen its partnerships and technological collaborations in China, leveraging the country's rapid digital transformation and innovation-driven economy, especially backed by rising demand fueled by AI and data center expansion.

He believes that the rapid transition of AI from conceptual stages to real-world applications can create new value for businesses and consumers. The company projects that AI will boost global storage requirements by 25 to 30 percent, with China's market growing at least at a comparable rate.

Teh said that in particular, the surge in data center construction in China has significantly increased demand for high-capacity storage solutions.

"The higher capacity drives are really where we're seeing the most significant increase in demand, because data centers are being built everywhere, worldwide as well as in China. And these data centers require a lot of storage to store lots of data as well," he added.

Its new Mozaic 3+ platform boosts storage density — akin to packing more data into the same physical space — to meet data center needs. Innovation is a cornerstone of Seagate's strategy, with the company investing over $4 billion in research and development over the past five years.

"We believe that for any product, for any industry to continue to progress, technological innovation is key," Teh said. China's vibrant innovation ecosystem has been a particular source of inspiration for the company.

"China is one place that I enjoy traveling to, because of the energy and innovation that I see here," Teh added, highlighting the country's dynamic technological advancements.

Despite global trade uncertainties, including tariffs and geopolitical tensions, Seagate remains steadfast in its commitment to the Chinese market. "We are still very confident that the market in China will continue to grow and be successful," he said.