US industry groups warn AI data center demand is triggering memory chip shortage, IDC sees device prices up 10-20 percent
Carmakers, hospitals and phone makers are now competing with AI data centers for the same memory chips. US industry groups warn the AI buildout is causing a shortage, with data centers set to take about 70% of global memory output by end-2026. IDC sees device prices rising 10-20%
The AI boom is starting to show up in the price of everything with a chip in it. US industry groups representing the automotive, consumer electronics, medical device, telecommunications and retail sectors are warning that AI data center demand is triggering a memory chip shortage, with production delays and higher costs expected for vehicles, PCs and consumer gadgets. The numbers behind the warning are stark. Data centers are projected to consume roughly 70% of total global memory chip output by the end of 2026, up from around 30% of demand before the AI boom, according to reporting by IEEE Spectrum. DRAM prices have risen 80 to 90 percent this quarter alone as supply gets diverted toward GPUs and AI accelerators. Market researcher IDC warns that PCs, tablets and smartphones could see price increases of 10 to 20 percent by the end of 2026, and projects an 11.3% contraction in the PC market this year as memory costs push average selling prices beyond what many buyers will pay. Analysts at Counterpoint Research do not expect prices to stabilize before 2027. Sources: IEEE Spectrum, IDC.