Cloud service providers could see DRAM and NAND flash memory swallow up to 68% of their hardware capital expenditure by 2027, according to Taiwan-based analyst TrendForce, as chip suppliers prioritise high-demand server memory over other production. This matters because the surging cost is unlikely to be absorbed by cloud operators and will likely be passed on to businesses and consumers through higher service charges, compounding price pressures already spreading across PCs and smartphones.

TrendForce forecasts total cloud operator capex will almost double this year, up 98%, before growing a further 50% in 2027, with memory's share of hardware spend rising from 47% this year to 68% next. It expects server DRAM prices to have climbed 270% year-on-year by the end of 2026 and enterprise SSD prices up 235% over the same period, driven by demand for HBM and RDIMM chips. The squeeze is already visible in double-digit PC price rises and a 5% drop in shipments, plus an expected 15% fall in smartphone shipments, while OVHcloud has said it may raise charges by up to 87% and Nvidia is reportedly poised to increase prices by 15% on some chip products.