TrendForce forecasts that DRAM and NAND flash procurement will account for 68% of top cloud service providers’ (CSPs) capital expenditure in 2027, up from 47% in 2026 – making memory the largest single cost block for hyperscalers.
Total CSP CapEx is set to nearly double in 2026 (+98%) to $922B**, and grow another ~50% to **$1.383T in 2027.
Memory pricing has already seen dramatic hikes: server DRAM contract prices rose 64% and 270% in H2 2025 and early 2026, while enterprise SSDs jumped 35% and 235% respectively. Although some LTAs cap increases, the HBM‑driven upcycle will likely keep contract prices elevated through 2027.
On the supply side, HBM + server DRAM will consume 51% of total DRAM bit supply in 2027, with combined capacity growing 27% year‑on‑year – underscoring the sustained expansion of AI‑driven memory demand.
ICgoodFind Takeaway:
Memory is swallowing cloud CapEx – a clear sign that AI compute is fueling a secular DRAM/HBM upcycle. Suppliers and buyers alike should plan for sustained tightness.
