# Fujifilm says AI demand will drive fivefold increase in tape capacity

- Published: 2026-10-30T17:38:19.000Z
- Updated: 2026-10-30T22:17:54.052Z
- Section: Market
- Topics: Business, Hardware
- Page: https://aidailyjournal.com/en/n/2026/10/30/fujifilm-says-ai-demand-will-drive-fivefold-increase-in-tape-capacity/
- Sources: [Ars Technica](https://arstechnica.com/gadgets/2026/10/fujifilm-to-boost-tape-production-5x-as-ai-fuels-archiving-demand)

## Summary

Fujifilm announced an investment of about 10 billion yen (approximately $63 million) to increase its magnetic tape production capacity fivefold compared with fiscal 2025 levels. The project, planned for fiscal years 2026 through 2028 at the Odawara site of the Kanagawa Factory, will fund manufacturing expansion and additional personnel, primarily to produce FUJIFILM LTO Ultrium10. The company says generative AI is causing “exponential” growth in global data needs and driving demand for archiving.

According to Fujifilm, major cloud service and data center operators have expanded their use of magnetic tape because of its relatively low cost and the ability to disconnect cartridges and store them elsewhere, creating a physical barrier against threats such as ransomware. The company says the investment will be its largest to date in dedicated LTO tape facilities.

## Why it matters (editorial interpretation)

The investment links Fujifilm’s expanded tape capacity to archiving demand that the company attributes to generative AI’s data growth. The ability to disconnect and store cartridges off-network also positions tape, according to Fujifilm, as a physical layer against threats such as ransomware.

_Summary written by AI Daily Journal in its own words, based on the sources above. For details, read the original articles._