As AI infrastructure balloons, the tech business is dealing with a reminiscence scarcity anticipated to persist via 2027 and probably longer. Whereas knowledge heart operators and hyperscalers with deep pockets are securing the reminiscence capability wanted to construct AI servers, their demand is outpacing provide. The shift is already driving value will increase throughout the IT market.
Because the likes of Microsoft, Google, Meta and Amazon snap up the vast majority of the worldwide silicon wafer capability, reminiscence producers — together with Samsung Electronics, SK Hynix and Micron Know-how — are prioritizing “higher-margin enterprise-grade elements,” in keeping with IDC. Consequently, there is a scarcity of wafers for mid-range smartphones and client laptops, and the price of these units has elevated.
Reminiscence shortages are driving up IT gear prices
The reminiscence scarcity is affecting IT gear pricing and availability — a shift that’s beginning to have an effect on CIO finances planning and infrastructure funding timing. Alvin Nguyen, senior analyst for Forrester, stated the reminiscence scarcity is having a big influence not solely on knowledge heart and office gear but in addition “commonplace IT gear reminiscent of servers, storage, community, desktops, laptops, and workstation gear. This implies much less flexibility with gadget configuration, gear shortages, and elevated prices — all of which we’re already seeing.”
The three main PC producers — Lenovo, Dell and HP — are already elevating costs this yr on account of dynamic random-access reminiscence (DRAM) shortages. Throughout the firm’s fiscal yr Q1 earnings name, HP Interim CEO Bruce Broussard famous that rising costs of DRAM and NAND flash reminiscence are rising HP’s enter prices, and the corporate expects this “volatility” to proceed this yr and probably into fiscal yr 2027. The corporate’s CFO, Karen Parkhill, stated reminiscence prices have elevated almost 100% quarter-over-quarter.
Reminiscence prices are solely rising as constrained manufacturing runs up in opposition to rising AI-driven demand. Samsung, which holds about 32% of the NAND market share, is predicted to boost NAND costs by as a lot as 100% in Q2 after related will increase in Q1, successfully doubling costs this yr. Trying on the DRAM market, income elevated 51% yr over yr in Q3 2025 to $40.4 billion, analyst agency Omdia reported.
“Proper now, the manufacturing is capped for this complete yr — it’s merely not attainable to supply extra reminiscence, which signifies that it’s an outright pricing battle with a view to safe that capability,” stated Runar Bjorhovde, a analysis analyst at Canalys.
How CIOs are adjusting to IT value will increase
To regulate their budgets in response to greater costs pushed by the reminiscence scarcity, CIOs can study tips on how to lengthen the lifecycle of present infrastructure and delay refresh cycles, Bjorhovde stated.
Nguyen echoed that view: “Reminiscence costs for some applied sciences are already 575% greater than final yr. For IT decision-makers, adjusting to amass programs with much less reminiscence or extending the gear lifespans are choices to reduce the influence.”
Marc Hoit, CIO at North Carolina State College, stated the reminiscence scarcity is already affecting finances planning, and stated he’ll seemingly find yourself “shopping for much less gear.” His IT group is “taking a look at choices like extending the lifetime of present gear or re-using RAM,” he stated. He additionally famous that quotes for servers are coming again two or thrice as costly as a month in the past — and are legitimate for just a few days, whereas a quote would usually be good for a month.
Along with extending the lifecycle of present {hardware} via upgrades or optimization efforts, CIOs could improve their use of cloud providers to entry capability with out relying as closely on bodily infrastructure, stated Terry White, affiliate chief analyst at Omdia. Vendor negotiations and partnerships can even grow to be extra crucial “to make sure precedence entry to restricted assets,” he added.
“Past budgets and procurement, CIOs might want to think about the potential ripple results on innovation and digital transformation initiatives. A chronic scarcity might decelerate the adoption of rising applied sciences that depend on high-performance reminiscence,” White stated.
The influence is uneven throughout IT spending. Almost $6 trillion might be spent within the IT market in 2026 globally, however units — PCs, smartphones, and many others. — account for under about $836 billion of that complete, in keeping with Gartner. System spending is up 6% year-over-year. Server spending, by comparability, is predicted to develop almost 37% year-over-year, whereas knowledge heart spending is forecast to extend about 32% to greater than $650 billion.
Whereas the reminiscence scarcity is driving up IT gear prices, it is not hitting all spending classes equally. Units — among the many hardest hit — account for under about 14% of complete IT spend in 2026, with knowledge heart programs at roughly 11%, in keeping with Gartner. This provides CIOs some flexibility in how they reply.
In observe, that will imply delaying purchases of recent units till the reminiscence market ranges out, whereas adjusting plans for servers and knowledge heart capability — both consuming the upper prices or shifting some workloads to the cloud.
Some aid to the reminiscence value spike might come as quickly as later this yr. The reminiscence market has traditionally been cyclical, which suggests a downturn is probably going on the horizon.
“The massive concern is when the AI bubble/market correction occurs,” Nguyen stated. “If a number of corrections occur this yr, then there might be some fast aid when it comes to pricing, though the shift to producing extra AI-targeted reminiscence (DDR5 and HBM) means the forms of different IT units that may take benefit could also be initially restricted.”
