The storage is built in, in any of a variety of ways (hard drives work very differently to USB pen drives); it’s generally manufactured by machines in a factory.
As for the powers of two? Well, the easiest way to hold a number an an electronic circuit is to have a wire; if there is a charge in that wire, it’s a 1, and if there isn’t a charge, it’s a 0. Only having two numbers is pretty useless, so we add in more wires; with two wires, we can have four numbers, with three wires we can have eight numbers, and so on. You will notice that the number of numbers is always a power of two; so if you have a number of a certain size in a computer, it can hold any number *up to* a given power of two. Now, the amount of storage in any storage device must have addresses; and the size of the number that holds the address therefore allows am amount of space up to a power of two to be addressed. Drive manufacturers then ensure that every space that can be addressed is valid readable and writable memory; that’s why it’s always in powers of two.
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