Surging memory costs are scuppering digital transformation projects

Rising memory costs are becoming a major headache for IT decision-makers, forcing some to delay and even scrap internal tech projects.

A survey from Vespertec has found that 53% are already experiencing the impact, with a further 39% expecting to be affected soon.

The biggest issue isn't securing supply, however, which is the major problem for just 12%. Instead, 37% revealed it's the difficulty of justifying higher costs internally.

“Recent reports of server vendors struggling to fulfil certain configurations show how tight parts of the market have become,” said Allan Kaye, co-founder of Vesper Technologies.

"For most organizations, however, cost is emerging as the more immediate challenge. As prices rise, many teams are under increasing pressure to justify spend internally, which is now a more significant barrier than securing supply itself."

The impact is already being felt at a project level, the survey found. Among those who have already been impacted, 72% report having delayed or cancelled projects planned for 2026.

Organizations are attempting to deal with the problem through practical, near-term adjustment, Vespertec noted.

The most common measures include extending the lifespan of existing hardware (49%), delaying or rescoping infrastructure projects (37%), and redesigning systems to reduce memory dependency (31%).

Alongside this, nearly one-in-five are putting up with reduced performance in a bid to remain within budget.

Meanwhile, more than half are consolidating, or considering consolidating, their supplier base, prioritizing reliability and guaranteed access over maintaining a broad range of vendors.

No light on the horizon

Nearly two-thirds of respondents blame AI-driven demand and hyperscaler consumption for the shortage, ahead of geopolitical disruption at 13%.

“What we’re seeing in the market right now is very real pressure on memory supply. Demand is rising across the board, particularly from AI, and manufacturers are having to make difficult trade-offs," said Kaye.

“In many cases, production is being prioritized towards HBM3 to support AI platforms, which is further constraining the supply of DRAM used more broadly across server infrastructure."

Crucially, most decision-makers don't expect things to get better any time soon: 84% reckon the shortage will last for at least 12 to 18 months, and nine-in-ten expect delays to infrastructure projects in the meantime.

A lack of clear information is also making it harder to plan effectively, with only 15% of those already impacted saying they get clear, actionable insight from vendors.

“AI platforms still rely heavily on DRAM, so the impact of these supply constraints is being felt across the wider market. At the same time, new capacity takes time to come online, and demand isn’t slowing. That leaves organizations in a difficult position – waiting for prices to stabilise carries risk, but reacting too quickly can be just as challenging," said Kaye.

“The organizations navigating this most effectively are planning further out. They’re reassessing priorities, what they actually need, working closely with partners to secure the infrastructure they’ll need over the next 12 to 24 months.”

Last month, DataDome warned that scalper bots were scouring the web to scoop up RAM, driving the price up even further.

The firm's Galileo threat research group said it had spotted one scalping operation making more than 10 million scraping results, including checking stock for specific RAM kits every few seconds.

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