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This Small Business Innovation Research (SBIR) Phase II project studies holographic data storage in a new ion-exchanged photochromic glass disk. It is well known that holographic data storage can significantly increase data storage capacity and reduce access time. However, the technology maturity of holographic data storage is believed to be impeded by: the lack of good holographic material that can be erased and recorded optically with almost unlimited rewriting cycles, with large index modulation for large capacity multiplexed data recording, and with long lifetime and immunity to destructive readout for archival applications. As demonstrated in Phase I the new ion-exchanged photochromic glass can satisfy all above requirements. In addition, it does not require developing or fixing after hologram recording making it an attractive candidate to replace other holographic materials in holographic storage applications. The Phase II research will first explore techniques to increase the recording volume thickness. The holographic performance parameters will again be determined after the thickness improvement. A compact holographic storage system will then be designed and constructed to show the effectiveness of disk type storage application. High capacity storage will be demonstrated. Commercial development will be explored with some major storage companies. Using the new ion-exchanged glass can significantly improve the holographic data storage technology for commercial and military applications such as computer data storage, on-line storage, library archival applications, image storage and processing for medical applications and military target identification, and fast access to large intelligent databases.