Playing the long game, Sandisk CEO: Company pivoting to long-term data center contracts

Sandisk Corp is pursuing long-term supply agreements with data center customers as the NAND flash market undergoes structural changes driven by artificial intelligence demand, CEO David Goeckeler said Wednesday at Bernstein’s TMT Forum.

The company is working to establish multi-year contracts that balance predictable demand with attractive economics, moving away from the industry’s traditional quarterly pricing model. Goeckeler said these agreements have evolved from price negotiation tools into critical supply assurance mechanisms as data center customers become the largest consumers of NAND flash.

Sandisk expects data center to represent the largest NAND market segment in calendar 2026, with growth forecasts rising from mid-20% to mid-to-high 60% over two forecast cycles. The company reported 64% sequential growth in data center sales last quarter, following low-to-mid 20% growth in the prior period.

The shift reflects fundamental market changes as hyperscalers require greater supply visibility for their expanding infrastructure needs. Goeckeler said customers are providing demand forecasts extending through 2028, prompting discussions about agreements lasting one to five years.