This report reviews machine-readable information storage technology as of fall 1985, describes its use at certain academic libraries, and makes recommendations for its implementation at the University of North Carolina at Chapel Hill. Focus is on data disks (reference and research materials) rather than on program disks, and suggestions are made for the selection, acquisition, processing, and cataloging of these materials. Also discussed are proposed sites for a machine-readable data file unit within the library and the staffing and service levels that should be provided. Appendices include proposed collection development policies for the University of North Carolina at Chapel Hill and the University of Michigan, summaries of interviews with academic librarians and producers of databases on compact disks, annotated lists of instructional and data disks, and a seven-page bibliography of recommended readings. (Author/THC)