Pure Storage Partners with SK Hynix to Deliver Energy-Efficient Storage Products for Hyperscale Data Centers

Pure Storage, Inc. (NYSE:PSTG) announced today a strategic collaboration with SK hynix to develop high-capacity, energy-efficient flash storage tailored for hyperscale data centers. The partnership leverages PSTG’s DirectFlash architecture and SK hynix’s advanced QLC NAND technology to deliver superior low-latency solutions that are able to address hyperscalers’ mounting storage needs while cutting energy consumption.

This move positions PSTG to capture further market share in the growing AI infrastructure space and represents a compelling value proposition amid rising power constraints and ESG mandates among data center projects.

With this announcement, Pure Storage, Inc. (NYSE:PSTG) makes a bold step to solidify its moat in serving hyperscale environments and maintain its double-digit revenue growth pace after a strong FY2025 with 12% top-line growth. The AI data center construction remains a hot market as new projects have been constantly growing in the last two years. For reference, $3.17 billion worth of data center construction projects were announced in April 2025 alone, which is an all-time high.

One of the biggest problems faced by data center projects is increasing energy demand and the need for energy-efficient infrastructure, both make them more profitable as well as comply with stringent ESG criteria. PSTG's attempt to boost the efficiency of storage products at hyperscalers represents the correct step in winning market share. Pure Storage, Inc. (NYSE:PSTG) delivers an advanced data storage platform to help organizations store, manage, and protect their data.

While we acknowledge the potential of PSTG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than PSTG and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.