{
  "id": 3547341,
  "title": "Memory crunch: Cloud operators may be pushed to splurge 68% of capex on DRAM and NAND",
  "url": "https://urgent.news/2026/08/26/memory-crunch-cloud-operators-may-be-pushed-to-splurge-68-of-capex-on-3547341",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-26T16:18:00.000Z",
  "source": {
    "name": "The Register Science",
    "slug": "the-register-science",
    "url": "https://www.theregister.com/storage/2026/08/26/memory-crunch-cloud-operators-may-be-pushed-to-splurge-68-of-capex-on-dram-and-nand/5292648"
  },
  "original_language": "en",
  "account": "The increasing expense of memory chip contracts may force cloud service providers (CSPs) to allocate over two-thirds of their capital expenditure towards DRAM and NAND flash by next year, predicts market analyst TrendForce. The firm expects total capex by cloud operators to double this year, increasing by 98 percent, and to grow an additional 50 percent in 2027. This surge in spending is attributed to both expanded infrastructure investment and escalating memory expenses. DRAM and NAND flash are forecasted to represent 47 percent of overall hardware spending this year, rising to 68 percent by 2027. Server DRAM components are projected to surge by 270 percent year-on-year by the end of 2026, while enterprise SSD prices are expected to rise by 235 percent over the same period. The surge in demand for high-performance memory from major clients is prompting DRAM and NAND chip manufacturers to prioritize production for server applications. HBM utilized in GPUs and RDIMMs used in servers together account for more than half of DRAM bit supply this year. The effects are already evident in PC price surges of double-digit percentages due to a shortage of standard memory parts, and a 5 percent decrease in overall PC shipments. The smartphone sector has also experienced similar consequences, with shipments anticipated to decline by 15 percent this year. For enterprise customers, the repercussions are becoming increasingly difficult to ignore. As memory consumes an increasingly larger portion of CSP capex, that cost is unlikely to remain with the cloud providers and will be passed on to clients. In an example, Euro operator OVHcloud announced plans to raise its prices by up to 87 percent to account for rising memory costs, potentially setting a precedent for other providers. The situation becomes even more concerning, as heightened memory costs provide server and AI chip suppliers like Nvidia with stronger grounds to hike their own prices. Recent reports suggest Nvidia plans to charge 15 percent more for its Vera Rubin and Grace Blackwell chip-based products. To counter this trend, cloud operators may need to further increase capital expenditure to uphold their designated infrastructure expansion rates, which could result in additional price hikes for users.",
  "summary": "Rising costs of new kit due to soaring memory prices likely to feed into cloud service bills",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Register",
        "title": "Memory crunch: Cloud operators may be pushed to splurge 68% of capex on DRAM and NAND",
        "url": "https://urgent.news/2026/08/26/memory-crunch-cloud-operators-may-be-pushed-to-splurge-68-of-capex-on",
        "published": "2026-08-26T16:18:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}