For all we know the storage is coming compromised hosts that don't even know they're participating.
I answered the parent.
https://crowdstorage.com/faq/#where-is-my-data-stored
Where is my data stored?
Your data is intelligently encrypted on your My Cloud Home and sliced into tiny pieces that only you can put back together. The encrypted data pieces are scattered across our community of users, using small portions of our member’s unused hard drive space. Spreading your data out in this way makes it more safe and secure than it would be if it was all stored in one location.
Storage comes from services that we offer to end consumers. In exchange for our services they agree to let us use the unused storage on device, i.e. (https://crowdstorage.com/products/device-backup/). We plan on expanding to many more devices.
Storage also comes from being able to transparently leverage more traditional storage that we purchase from various providers.
We also purchase storage in datacenters.