I have a 256gb SSD and comfortably fit roms and media up to Snes/Genesis/TG16 era (beyond that the digital joysticks on my cab would make most n64+ era games unplayable) , but not mame CHDs.
If I weeded out only the roms / chds I really wanted (playable, US games, no clones) then it would probably all fit in 256, but 128 would be super tight.
All this said AM doesn't care where the roms are or if they're even there once you've built the list.