Computer memory prices surge, driven by AI data centers
COLORADO SPRINGS, Colo. (KRDO) -- Experts tell KRDO13 that the cost of electronic storage and computer memory has skyrocketed over the past year, far outpacing normal inflation, primarily due to increased demand from artificial intelligence data centers.
New computer costs have increased by $200 to $300, on average, making new technology more expensive for consumers, experts say.
The website PC Part Picker reports a dramatic increase in the cost of storage software since November of last year. This trend indicates that personal computers costing less than $500 will likely be unavailable by 2028, according to research and advisory firm Gartner, Inc.
Barry Biggs, owner of PC Brokers, a computer store in Colorado Springs, is directly dealing with the significant price increases for memory and storage in various devices, including computers, cell phones and video game consoles.
Biggs attributes these rising costs to artificial intelligence, specifically the demand from data centers.
“You've heard the word data centers,” Biggs said. “Well, what are they doing? They're buying memory, and they're buying it years in advance. Going forward, my memory availability will be diminished quite a bit. The sources I'm hearing is I may not be able to buy memory at even more exorbitant prices later on.”
The high cost of new technology has led to a noticeable shift in consumer behavior at PC Brokers.
This shift has also resulted in a 50% increase in the store's repair business. “Now, used machines are outselling new ones because the prices are radically different,” Biggs said. “And our repair business is up about 50%. People are saying, I've got to make this computer last a few years longer.”
Micron Technology, one of the three main manufacturers of memory modules, has reportedly stopped making memory for consumers entirely to focus on selling to data centers. Micron's quarterly earnings report shows the company is making record profits. A part of their report also states, “AI hasn't just increased demand for memory — it has fundamentally recast memory as a defining strategic asset in the AI era.”
Biggs expects the problems with memory availability and increasing costs to intensify by the end of the year.
“I hate to say...but I think it's going to be much higher between now and the end of the year, unfortunately,” Biggs said.
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