Cloud operators are projected to allocate more than two‑thirds of their capital expenditure to DRAM and NAND memory by 2027, according to TrendForce. Total capex for cloud providers is expected to rise 98 percent this year and an additional 50 percent in 2027. The analyst forecasts that DRAM and NAND will represent 47 percent of hardware spending this year, increasing to 68 percent in 2027, with server DRAM prices projected to grow 270 percent year‑on‑year by the end of 2026 and enterprise SSD prices rising 235 percent over the same period. Demand for high‑performance memory from AI and other workloads has led chipmakers to prioritize server‑grade DRAM and NAND production, which together account for over half of total DRAM bit supply. The resulting shortage has pushed up prices of standard memory modules, contributing to a 5 percent decline in PC shipments and a 15 percent drop in smartphone shipments. Enterprise customers are feeling the impact as cloud providers consider passing on memory‑related cost increases; OVHcloud announced plans to raise its charges by up to 87 percent to cover higher memory expenses, a move that may foreshadow similar adjustments across the industry. Memory cost pressures also give chip suppliers such as Nvidia justification to raise prices, with reports indicating a 15 percent increase for products containing its Vera Rubin and Grace Blackwell chips. The sustained rise in memory costs may compel cloud operators to increase capital spending further, potentially leading to higher prices for downstream users as the market adjusts to the new cost structure.