Hard-disk drive (HDD) prices have reached record highs as the artificial-intelligence investment cycle redirects manufacturing capacity toward high-capacity data-center storage. Bulk prices for benchmark HDD categories rose for a sixth consecutive quarter in the July-to-September period, with 3.5-inch 1TB drives reaching $67.70 per unit, up 15% from the previous quarter, and 2.5-inch 1TB models rising 10% to $61.20. Hyperscale cloud operators including Google and Amazon are increasing data-center spending, driving demand for nearline HDDs and prompting manufacturers to prioritize higher-margin, large-capacity products. Nearline HDD prices rose 20% to 30% in the third quarter, while some manufacturers now have delivery lead times of about one year. The United States accounts for 60% of nearline HDD purchases, and Techno Systems Research estimates shipments will grow 14% year over year in 2026. General-purpose HDD demand is also benefiting from tighter SSD supplies for PCs and other products, as well as recovering Chinese demand for surveillance-camera storage. HDDs remain slower than SSDs but retain a capacity advantage, while the market remains concentrated among Seagate Technology, Western Digital and Toshiba Electronic Devices & Storage. Prices are expected to remain firm while AI investment continues, although the duration of the broader shortage remains uncertain as production shifts toward large-capacity drives.