Storage Chip Shortages Expected Through 2030 Due to AI Boom, Tech Executive Warns

A technology executive predicts storage drive supplies will become increasingly strained as artificial intelligence systems require significantly more data storage capacity. The warning comes as AI demand has already created shortages in high-bandwidth memory chips, with new AI systems expected to need 35% more storage than current technology.

The artificial intelligence revolution that’s already creating shortages in specialized memory chips may soon trigger supply constraints for storage drives as well, according to a technology industry executive speaking at a major conference this week.

Greg Matson, a senior vice president at Solidigm, the American storage division of South Korean tech giant SK Hynix, warned that AI’s voracious appetite for data could strain storage supplies through the end of the decade. His comments came during Nvidia’s annual developer conference in San Jose, California, where industry leaders gathered to discuss the latest AI developments.

The storage supply concerns mirror existing problems with high-bandwidth memory chips, which work alongside processors in AI servers. Earlier this week, SK Group Chairman Chey Tae-won predicted these memory chip shortages could persist until 2030 due to surging demand for AI technology.

Nvidia CEO Jensen Huang highlighted the growing pressure on storage systems during his Monday keynote presentation. “The storage system is going to get pounded,” Huang told conference attendees, as the company unveiled new technologies designed to accelerate data transfer from storage devices to processing chips.

The challenge stems from AI software’s ability to extract valuable insights from massive datasets that were previously too complex for human analysis. This capability is driving unprecedented demand for solid state drives used in business applications, Matson explained.

According to Matson’s projections, AI systems launching later this year will require 35% more storage capacity compared to existing technology. “It’s going to be tight,” he said when discussing storage memory supplies between now and 2030.

While Solidigm plans to introduce higher-capacity drives and increase manufacturing capacity, Matson acknowledged the company cannot meet the surging demand. “We’ll be coming out with higher-density drives from a silicon perspective later this year, and even expanding our manufacturing output as well,” he explained. “But can we keep up? No, we can’t. I could sell twice as much as I am today.”