I had read that SMR wasn't good in raids which is how I am assuming a data center would be using it?
It's not good in RAID nor most other uses, basically most uses of SMR where it looks like a normal hard disk is a bad idea. Are these "SMR drive firmware emulating a CMR drive" units still being sold (given how stupid they are)? I have to admit I've not seen one for a while.
I expect that 99%+ of the SMR drives sold goes to data center and runs in "host-managed SMR" mode, where the host knows about and manage the SMR/zones rather than the disk firmware.
There's a number of usage scenarios where there's very little downside to SMR when operated this way and they get 10-25% density improvement which is the directly reflected into space and power which is a lot of the cost.
But most people will never see this because it doesn't make sense to spend all that time and money to set this up for small operators - and my guess is that "merely" 10,000 drives probably still counts as small!
But massive cloud datacenter and hyper-scalars? Some of them love them which is why new models keep on coming out, they're very much not for most users but the people who DO want them buy them in units of "how many shipping containers". And if one vendor doesn't provide them, the orders will go to one of their competitors...