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Is there a benefit to having fewer larger HDDs compared to many not-so-large HDDs?
Space, power, interface count. Keep in mind things like "space" apply to datacenter space, not just any space, in that 1/3 of a rack of 30 TB drives saves a lot of DC vs 10 racks of 1 TB drives. Also the general problem extends i.e. "many large HDDs" would need to turn into "boatloads of smaller ones" and so on.