Memory crunch: Cloud operators may be pushed to splurge 68% of capex on DRAM and NAND
Rising costs of new kit due to soaring memory prices likely to feed into cloud service bills
The rising cost of contract prices for memory chips could see DRAM and NAND flash account for more than two-thirds of the capital expenditure of cloud service providers (CSPs) by next year.
Taiwan-based market watcher TrendForce forecasts that total capex by cloud operators will almost double this year - up 98 percent - and grow a further 50 percent in 2027. That rapid rise is driven partly by growing investment in new infrastructure, but also by soaring memory bills.
The upshot is that TrendForce estimates DRAM and NAND flash will account for 47 percent of the total spend on hardware this year, jumping to 68 percent of it in 2027.
The analyst doesn’t put revenue figures to its predictions, but reckons server DRAM components will have grown by 270 percent year-on-year by the...
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