Magnetic tape storage is booming again, thanks to AI's unquenchable hunger for data

Magnetic tape storage is experiencing a resurgence, driven by the insatiable demand for data from artificial intelligence companies. The Linear Tape-Open (LTO) format, initially developed in the 1990s as an open-standard alternative to proprietary tape formats, is now seeing a surge in relevance and shipment volumes. The LTO Consortium, comprising HPE, IBM, and Quantum Corporation, is promoting and licensing LTO Ultrium technology to manufacturers, with LTO capacity shipments in Q1 2026 growing by 57% compared to the same period in 2025.

The resurgence of magnetic tape can be attributed to the growing demand for data storage from AI companies as they process and train large language models (LLMs) and handle inference workloads. Additionally, factors such as rising hardware and power costs, as well as the need for more resilient cyber operations, have pushed enterprises to adopt long-term storage solutions like LTO Ultrium.

Magnetic tape is once again becoming a strategic component of modern data infrastructures, as demonstrated by the fact that LTO media set a record of 176.5 exabytes in shipped capacity in 2024.

The LTO-9 tapes, with a native capacity of 18TB, and the newer LTO-10 tapes, capable of storing 40TB/100TB of uncompressed/compressed data, are expected to further fuel growth in the LTO Ultrium market. Storage analyst Tom Coughlin highlights that AI workloads and traditional archival workloads can both drive growth in this market.

Many organizations are considering tape-based solutions for their primary and secondary storage platforms, with magnetic tape offering a stable anchor in a mix of different storage solutions. The LTO Consortium hopes that customers will upgrade their existing solutions to newer LTO generations, which would further boost shipment figures.