The Data Center Monster: SSD and RAM Prices Skyrocket as OpenAI, Google & Meta Buy Up Enormous Volumes of Chips

In a sharp escalation unseen in recent years, the global prices of Solid-State Drives (SSDs) and RAM modules have surged dramatically, with retail tags ballooning by anywhere between 30% to 100% over the past few months.

Consumer-oriented storage drives that now come with a hefty tag of around ₹15,000 used to cost just a fraction of the price as early as 2024. The immense spike has left consumers, especially gamers, computer enthusiasts, system builders and enterprises grappling with higher technology costs as Artificial Intelligence seems to call the shots on demand and supply in the wafer market.

At the heart of this disruption is the massive construction of AI data centres by companies such as OpenAI, Google and Meta. These firms are procuring unprecedented volumes of DRAM, NAND flash and advanced High Bandwidth Memory (HBM) required for AI accelerators and high-performance servers.

As companies scramble to integrate AI wherever possible, the infrastructure is now emerging as the most profitable segment in the semiconductor industry; memory manufacturers have shifted production priorities accordingly.

The global memory market is predominantly controlled by just three companies - Samsung, SK Hynix and Micron. All three have reallocated a significant portion of wafer capacity to server-grade memory used in GPUs and AI clusters. This has resulted in a structural shortage in consumer-grade components such as SSDs and DDR4/DDR5 RAM modules.

Industry reports indicate that memory manufacturers initially raised contract prices by 20-30% earlier this year, but subsequent quarters saw even sharper revisions. Reports suggest that some Original Equipment Manufacturers (OEM) now receive barely 70% of the hardware quantities they order, forcing delays in PC, laptop, and server production cycles.

Several storage brands have also temporarily halted shipments as fluctuating input costs make pricing unsustainable.

The situation intensified further when Micron announced the winding down of its well-known consumer brand “Crucial”, ending a 29-year presence in the retail memory and SSD market. The company has shifted its focus entirely toward enterprise and AI customers, signalling how decisively the industry is moving away from lower-margin consumer categories.

The procurement behaviour of AI companies is a major factor behind this shift. Their orders for GPUs and HBM-powered accelerators run into billions of dollars, and they are willing to purchase every available unit on the market.

Such demand absorbs global supply instantly, leaving minimal inventory for retail consumers. As enterprises move away from spinning hard drives and accelerate adoption of flash-based solutions, NAND demand has tightened even further.

Down the Memory Lane

The situation is unlikely to stabilise soon. New fabrication plants announced by Micron, Samsung and others will take about two to three years to come online, with requisite output expected only around 2027-2028. Analysts predict memory pricing to remain elevated throughout 2025, with possible shortages extending into 2026 as AI demand continues to grow.

For consumers, system builders and enterprises planning hardware overhauls, it is slated that higher prices may persist for an extended period. With Windows 10 support ending and large-scale upgrades imminent worldwide, pressure on memory supply may intensify further.

Until production capacity expands or AI demand normalises, the global memory market is expected to remain constrained, making SSDs and RAM yet another silent casualty of the ongoing AI infrastructure boom.

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