The LTO Program Technology Provider Companies (HPE, IBM, and Quantum Corp.) announced a 57% year-over-year increase in tape storage capacity shipments for Q1 2026. This growth follows a record year in 2024, where 176.5 exabytes of compressed LTO tape capacity were shipped, marking a 15.4% increase from the previous year. While 2025 saw a 9% decline to 160.3 exabytes, Q1 2026 figures indicate a strong rebound in demand.
The surge in tape shipments is primarily driven by the escalating data demands from AI data centers. Additionally, traditional archive workloads and the need for cyber-resilient backups continue to contribute to the demand for tape storage. Hugues Meyrath, CEO of Quantum, noted that tape is increasingly seen as a strategic component for modern data infrastructure due to cost, energy efficiency, and cyber resilience pressures.
The market's readiness for LTO-9 and LTO-10 technologies has also played a role in the recent growth. LTO-9 tapes support up to 18TB uncompressed or 45TB compressed data. Early adoption of LTO-10 cartridges, which store up to 40TB native or 100TB compressed, has further boosted shipment figures. The LTO program's roadmap extends to LTO-14, projected to offer up to 576TB native capacity per cartridge.
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LTO Program Technology Provider Companies (HPE, IBM, Quantum Corp.) reported a 57% year-over-year increase in tape storage capacity shipments for Q1 2026. This growth is attributed to increasing AI data center demands, traditional archive workloads, cyber-resilient backups, and the adoption of LTO-9 and early LTO-10 technologies.