BS Teh, Chief Commercial Officer at Seagate Technology, outlines the security, edge and cost pressures pushing organisations beyond cloud-first.
The speed at which data is generated, used and stored today is unprecedented, and it continues to grow. In 2026, this trend will accelerate further, placing even greater demands on businesses.
Globally, this is reshaping not only the IT landscape but also the way companies innovate. Data has long been the foundation for innovation: it enables the development of new business models, the automation of processes, and the customisation of products to meet individual customer needs.
Teams are increasingly data-driven, using intelligent analytics to make faster, more informed decisions. At the same time, new forms of collaboration are emerging, powered by AI tools that consolidate knowledge and foster creative exchange.
In the age of AI, the value of data is more evident than ever: it is the most important asset in the digital economy. AI algorithms rely on analysing large and diverse datasets to identify patterns, generate forecasts and create value.
The better companies capture, structure and store their data, the more effectively they can leverage AI’s potential. This means businesses capable of managing and storing large, complex datasets efficiently gain critical competitive advantages. Those able to handle data securely, flexibly and sustainably are laying the foundation for innovation, agility and long-term success.
As a result, the data storage industry is at a turning point. It must not only keep up with exponential data growth, but also deliver solutions that meet demands for sustainability, scalability and cost efficiency. This transformation is largely driven by rapid advances in AI, which generate and process ever-growing volumes of data and set new requirements for storage infrastructure.
Hybrid strategies for the next generation of the data economy
The role of AI as a growth driver and ‘data multiplier’ is undeniable. AI has made data the most valuable asset in the digital economy, prompting a fundamental shift in enterprise computing – one that is already shaping data centre planning and investment today, and will continue to do so in 2026.
Nearly 75% of business leaders are moving from a ‘cloud-first’ approach to a hybrid model that combines public cloud, private infrastructure and edge computing. The reasoning is clear: companies want to enhance security, enable real-time edge applications and reduce costs, while meeting the growing demands of AI-driven workloads.
The conclusion is simple: all data has value today. Unlocking that value requires a smarter, hybrid approach to IT infrastructure and storage—one that meets both today’s and tomorrow’s needs.
Generative AI accelerates the content explosion
Another key driver of the data explosion is GenAI, which is fuelling a boom in digital content creation. GenAI is democratising content production: employees across departments can now generate text, images and videos within minutes. This fundamentally changes workflows and introduces a new, data-driven reality for businesses.
The impact is already clear. Nearly three-quarters of businesses report that GenAI enables employees outside traditional creative roles to create content independently – for example, in sales, HR or product management.
This results not only in more content, but also in new formats that were previously too costly or time-consuming to produce, such as personalised videos, training materials or marketing assets. Over two-thirds of companies report an overall increase in content files, with faster production speeds and greater variety.
Many now create multiple versions of the same content to target audiences more precisely. At the same time, average file sizes are growing, and nearly half of companies are storing larger volumes of similar or redundant files, further increasing storage demands.
To keep up, many companies plan to retain their data for longer and are increasingly adopting data-tiering and archiving strategies. While a majority have already expanded or modernised their storage infrastructure, only one-third feel fully prepared for the demands of GenAI workloads today.
By 2026, it will become clear which companies have set the right course for sustainable data management, and which risk being overwhelmed by the content explosion.
Future-proof storage strategies will determine success in 2026
The content explosion driven by GenAI is both an opportunity and a challenge. Companies that align their storage strategies accordingly will benefit twice: they will unlock the full potential of AI-generated content while maintaining control over their data assets.
Data is becoming a strategic resource, as AI is transforming creativity, productivity and entire industries at an unprecedented pace. Businesses should treat every single byte of data as valuable, because it truly is.
This article is part of our DCR Predicts 2026 series. Check back next week for our final week with a new prediction every day.
