An anonymous reader quotes a report from Ars Technica: In an announcement released Thursday, Fujifilm said it will invest roughly 10 billion yen (about $63 million) to increase its production capacity fivefold for an unlikely beneficiary of the AI era: magnetic tape. Fujifilm attributes the surge in archiving demand to the spread of generative AI, which the company remarked is producing "exponential growth" in data needs worldwide. The 5x increase in production capacity will be measured against fiscal year 2025 production levels. The investment in Fujifilm's Kanagawa Factory, Odawara site will make it "the largest investment Fujifilm has made to date in dedicated LTO tape facilities." The project will run from fiscal years 2026 through 2028 to fund manufacturing expansion and additional personnel, primarily to produce the latest-generation "FUJIFILM LTO Ultrium10" tape. [...] According to Fujifilm, "major cloud service and data center operators" have been expanding their use of magnetic tape because it can store large data volumes at relatively low cost. Tape backups can be easily disconnected and stored in a drawer, a vault, or a separate facility. Fujifilm highlights the ability to air-gap tape cartridges as a last defense for user data: "Given the sophistication of cyberattacks, magnetic tape is attracting increasing attention as a means of protecting data from threats such as ransomware."

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