A method and apparatus for leveraging spare disks in a data storage system. Specifically the present invention describes a method for data recovery and redundancy in a data storage system having a plurality of disk drives. The data storage system is grouped into a plurality of arrays having data redundancy. The plurality of arrays is arranged in an optimum combination of arrays of mirrored pairs of disk drives, arrays of three disk drives in a redundant array of independent disks (RAID) configuration, and arrays of more than three disk drives in a RAID configuration to maximize performance while providing data redundancy. For every failure of one of said plurality of arrays due to a failed disk drive, a new array having data redundancy in a RAID configuration is dynamically created in said plurality of arrays. The new array is optimized for best performance and contains information from the failed disk drive.