# Hyperscaler commits to multiyear supply deal with Western Digital > Source: > Published: 2026-06-16 15:32:24+00:00 # Hyperscaler commits to multiyear supply deal with Western Digital Western Digital's entire 2026 HDD production is already sold out as AI-driven data center demand locks in agreements stretching into 2028 Western Digital has sold every hard disk drive it plans to make in 2026. That’s not a flex, it’s just what happens when the world’s largest cloud companies need somewhere to park all the data their AI models are generating. The storage giant has secured multiyear commercial agreements and firm purchase orders with leading hyperscalers for its high-capacity HDDs, with several top customers extending commitments into 2027 and 2028. Cloud revenues now account for 89% of the company’s total revenue. ## The numbers behind the demand Western Digital’s fiscal Q2 2026 results tell the story clearly. Revenue hit $3.02 billion, a 25% jump year-over-year. The cloud segment alone pulled in $2.7 billion, representing a 28% increase from the same period last year. Non-GAAP gross margins reached record territory at roughly 46%. The company shipped 215 exabytes during the quarter, up 22% from the prior year. To put that in perspective, an exabyte is a billion gigabytes. Western Digital moved 215 billion gigabytes worth of storage capacity in a single quarter, and demand is still outpacing supply. While Western Digital doesn’t name names in its press materials, the hyperscaler customer base is widely understood to include Amazon, Microsoft, Google, and Meta. ## Why HDDs still matter in the AI era SSDs are faster, sure. But on a cost-per-terabyte basis, hard drives remain dramatically cheaper for bulk storage workloads. Western Digital is currently qualifying its 40TB UltraSMR ePMR drives, which it describes as the world’s highest-capacity HDDs. Volume production is expected in the second half of 2026. Beyond that, Western Digital is developing Heat-Assisted Magnetic Recording (HAMR) technology targeting capacities exceeding 100TB per drive. In English: they’re using tiny lasers to heat the disk surface during writes, allowing data to be packed even more densely onto the platters. ## What this means for investors When 89% of your revenue comes from cloud customers on multiyear contracts extending into 2028, you’ve essentially built a predictable, enterprise-centric business with unusual revenue visibility for a hardware company. The risk, as always, is concentration. When nearly nine out of every ten revenue dollars come from a handful of cloud giants, losing even one major contract could create a serious air pocket. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).