Memory to account for 68% of cloud giant CapEx by 2027

Total CSP capital expenditure is projected to surge 98% YoY in 2026 and rise a further 50% in 2027, according to a press release from TrendForce. Memory's growing share of that spending is being driven by price increases that have been accelerating since the second half of 2025.

Server DRAM contract prices rose a cumulative 64% in the second half of 2025, with a further increase of approximately 270% projected for 2026. Enterprise SSD prices followed a similar trajectory – up around 35% in the second half of 2025, with a projected cumulative increase of 235% in 2026. Some long-term agreements signed from Q2 2026 onward include price ceilings that could limit further increases, though HBM contract prices are still expected to rise 70–140% in 2027.

Beyond price, demand for memory bits is growing rapidly. TrendForce estimates HBM and RDIMM combined will account for 51% of DRAM bit supply in 2026, as suppliers prioritise limited capacity for server applications. In 2027, process migrations and new fab ramp-ups are expected to drive a 27% increase in combined server DRAM and HBM bit supply.

The implications extend beyond memory suppliers. Elevated memory costs give chip suppliers such as Nvidia greater justification for raising product prices. CSPs may in turn need to increase capital expenditure further to maintain targeted AI chip procurement volumes – or alternatively, optimise memory architectures by reducing memory capacity per system to manage costs and supply constraints.

As Evertiq has reported throughout 2026, the memory market has been undergoing a fundamental shift – one that goes well beyond cyclical price swings.