Data storage density (amount of data per given volume) has doubled every three years since magnetic storage was developed in the mid 1950s. On top of that, technologies have been developed to split the load of transporting data across the Internet. Plus, large fiber optic networks have been installed around the world providing enormous bandwidth for data transfer.
As for websites crashing under load, that’s usually an issue with the code of the site, rather than particular hardware limitations like you’d see in the late 90s. Cloud computing services offer rapid scaling and elasticity, where additional virtual machines are provisioned on a temporary basis to handle spikes in load.
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