System and method for managing storage device capacity use

Information handling system storage devices are managed to reduce power consumption by consolidating stored information to less than all of plural storage devices and powering down the storage devices that are no longer storing information. If a predetermined buffer of unused capacity is detected at the storage devices, then a powered down storage device is powered up to store additional information. The storage devices are consolidated to maintain desired performance parameters, such as by monitoring I/O performance for information stored on active storage devices.