TrendForce Predicts Memory Will Consume 68% of Major CSP CapEx by 2027
Market research firm TrendForce predicts that DRAM and NAND flash will account for 68% of major cloud service providers' (CSPs) capital expenditure by 2027, up from 47% in 2026. This comes as total CSP CapEx is projected to reach $92.2 billion in 2026 and $138.3 billion in 2027. The surging demand for AI infrastructure, particularly High Bandwidth Memory (HBM) and enterprise SSDs, is driving up memory prices and shifting cloud hardware budgets heavily toward storage and memory. This shift could impact the procurement of other server components and accelerate investments in memory production capacity. Server DRAM contract prices surged by 64% in the second half of 2025 and 270% in 2026, while enterprise SSD prices rose by 35% and 235% in the same periods. By 2027, HBM and server DRAM are expected to consume 51% of the total DRAM supply.
## BACKGROUND
High Bandwidth Memory (HBM) is a high-performance 3D-stacked DRAM architecture designed to deliver massive data throughput for AI and high-performance computing workloads. Cloud Service Providers (CSPs) like Microsoft, Google, and AWS require vast amounts of HBM and enterprise SSDs to power their AI data centers, which has led to supply constraints and soaring contract prices.