Does this need to be formatted before use? If so, does it limit the max storage down to 2 TB?

This will need to be formatted since it's in raw format when you get it. This is so it's compatible with multiple OS'. If you format it in Windows as NTFS, FAT, FAT32, etc. it will limit the drive to 2TB. If you format it GPT, it will format the full 3TB.

Questions & Answers: Seagate IronWolf 3TB NAS Hard Drive 5900 RPM 64MB Cache SATA 6.0Gb/s CMR 3.5" Internal HDD for RAID Network Attached Storage ST3000VN007

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Seagate IronWolf 3TB NAS Hard Drive 5900 RPM 64MB Cache SATA 6.0Gb/s CMR 3.5" Internal HDD for RAID Network Attached Storage ST3000VN007

Range of capacities up to 14TB.
Workload rate of 180TB/year.
Optimized for NAS with AgileArray, enables dual-plane balancing and RAID optimization in multi-bay environments.
Actively protect your NAS with IronWolf Health Management.
Rotational Vibration (RV) sensors.
Always-on, always-accessible 24x7 performance.
1M hours MTBF, 3-year limited warranty.

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