Toshiba to double data-center HDD capacity, Seagate and Western Digital slide

The report comes from Nikkei, which said Japan-based Toshiba plans to double production capacity for hard-disk drives used in data centers during its fiscal 2027. That single report was enough to move shares of Seagate Technology (STX) and Western Digital (WDC) lower on Friday, showing how closely investors are watching supply plans in the data-center storage market.

The two companies are the main hard-disk drive rivals named in the report, and the article notes that the news has clearly prompted concern among their investors. Toshiba's move, as described, would add meaningful capacity in a product category tied to data centers, though the body does not detail how much capacity is involved or the exact timing within fiscal 2027.

What the outcome hinges on is how much of Toshiba's planned capacity actually reaches the market and when, since the report describes an intention to double production capacity rather than completed output. For Seagate and Western Digital shareholders, the pressure is likely to track how quickly that expansion materializes.