TrendForce Predicts Memory to Account for Over Two-Thirds of Major CSP CapEx in 2027
Summary
TrendForce predicts that DRAM and NAND flash will account for 68% of major cloud service providers' (CSP) capital expenditure in 2027, up from 47% this year. Meanwhile, total CapEx of major CSPs will nearly double to $92.2 billion in 2026, and further increase by about 50% to $1.383 trillion in 2027. Server memory contract prices rose 64% and 270% in H2 2025 and early 2026 respectively, while enterprise SSD prices rose 35% and 235% in the same periods.
Bubble analysis
This news directly involves the core cost of AI infrastructure—memory prices soaring—and predicts a significant increase in CSP capital expenditure, with memory accounting for over two-thirds. This indicates that the AI investment boom is driving up hardware costs, potentially exacerbating bubble risk as spending growth far outpaces current AI revenue.
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