Why Memory Prices are Surging Again
AI is disrupting the technology industry, driving up memory prices. As of February, DRAM and NAND flash memory prices have surged, with some expected to rise by 90–95 percent by next quarter. Increasing AI workloads and infrastructure expansions have caused a major spike in memory demand, resulting in higher refresh costs for enterprises across the board. This severe supply-and-demand imbalance has created an industry-wide memory shortage with no end in sight, and ITAD providers play a pivotal role in offsetting supply constraints via asset reuse and secondary markets.
AI Infrastructure is Driving Massive Memory Demand
Artificial Intelligence is all the rage, but it is becoming quite costly to implement. AI training and inference require significantly more RAM, causing a global spike in AI demand for memory. A key driver of AI servers is AI data center upgrades. Technological advances have altered traditional supply planning models, and digital storage is also at an all-time high, causing hyperscale data centers to increase density and performance requirements to keep up with demand. This expansion of AI infrastructure has increased demand for high-bandwidth memory (HBM) to scale GPU clusters, driving enterprise hardware refresh cycles.
Why the Current Memory Shortage Exists
Several factors have contributed to the current memory shortage, including limited semiconductor fabrication capacity, the transition to advanced memory technologies, and long production lead times. Manufacturers are prioritizing high-margin AI components for specialized chips, domain-specific data access, and “agentic” AI applications. Additionally, supply chains are still being impacted by pandemic-era inventory corrections. As a result, enterprises are experiencing higher procurement costs, delayed deployments, and budget pressure.
The Cost Impact on Enterprise IT Refresh Strategies
Memory shortages, combined with surging DRAM prices, can have a domino effect on the cost of enterprise IT refresh strategies. IT refreshes are becoming a pain point as enterprise hardware pricing and component costs rise, and total refresh budgets feel tighter. More companies are showing interest in extending the lifecycle of existing assets to ease refresh costs while maximizing enterprise ROI from assets already in use. Rising prices lead to increased scrutiny of replacement versus upgrade decisions and to greater CFO involvement in hardware procurement.
The Growing Role of Secondary Markets
Skyrocketing prices of technology, memory, and AI infrastructure are turning many away from overspending on new equipment. Secondary markets are becoming more appealing as companies shift toward more stable availability and more sustainable options. The industry has seen increased demand for certified, tested memory modules, and refurbished components are becoming more widely accepted. The ITAD reuse market supports a circular IT supply chain and enables a Q1 IT refresh using Q4 assets. More OEMs are partnering with enterprises to pursue combined, environmentally sound reuse efforts as manufacturing standards evolve. Device reuse maximizes value by keeping assets in circulation, and secondary markets help offset shortages and smooth volatility.
How ITAD Providers Support Memory Supply Through Reuse
Reuse is a key facet of IT asset disposition, and ITAD providers support memory supply through their repair and refurbishment processes. One of the first steps devices undergo is inspection. During this step, assets are checked for working hard drives and for physical and functional damage. Devices that are still functioning properly are prepared for reuse, and hard drives are extracted with secure data handling. This includes component harvesting from retired enterprise equipment and the testing and grading of memory modules. Through reuse, ITAD providers redeploy refurbished memory modules back into enterprise fleets to help replenish memory supply during shortages. This reduces procurement lead times, preserves usable hardware, and extends the lifecycle of infrastructure, maximizing the value of assets already in storage.
Circular IT and Supply Chain Resilience
Keeping devices in circulation supports sustainability and supply chain resilience by enabling closed-loop supply chains. Because IT assets and components are reused rather than retired, the demand for newly manufactured components decreases, helping to preserve resources and budget funds. Supporting a circular economy improves sustainability metrics by reducing carbon emissions and strengthening ESG positioning. Reuse requires certified erasure methods, such as NIST 800-88, to ensure all data is completely wiped before assets are reused, and meeting compliance standards helps enterprises meet governance criteria. ITAD providers also offer employee buyback and donation programs to help provide electronics to those without access, which improves social ESG criteria.
What Enterprises Should Do Now
As the technological market continues to fluctuate, hardware lifecycle management with an ITAD provider is a key element of supply chain resilience. Maximizing asset value can help enterprises obtain IT refreshes even during supply shortages at minimal cost.
HOBI’s Vice President of Sales and ITAD Services, Jason Radakovich, encourages companies with surplus hardware to “take advantage of the current market and cash in on any extra memory.” According to Radakovich, “It is an excellent time to dispose of any excess memory. Most enterprise hardware, including servers, network devices, and storage products, has memory that can be harvested and then resold.”
Enterprise next steps:
- Inventory existing hardware assets.
- Evaluate upgrade vs replacement.
- Engage ITAD partners early and get ahead of the curve.
- Capture residual value and reusable components.
- Integrate lifecycle planning into procurement strategies.
ITAD as a Stabilizing Force in a Volatile Hardware Market
“Global demand for AI servers from Hyperscalers such as Microsoft, Google, Meta, and Amazon is the main cause for the memory shortage,” says Radakovich. Coupled with ongoing price increases for DDR4 and DDR5 memory, the AI drive has created a memory demand that even current factory production from major manufacturers such as Samsung, SK, Hynix, and Micron cannot keep up with. ITAD offers supply chain solutions that enable reuse and circularity at scale. Circular supply chains reduce costs and risks by maximizing the value of used assets through component harvesting with a compliant ITAD partner.
Plan with proactive assessments of reusable component inventory to maximize value and expand asset lifecycles. ITAD providers help stabilize a turbulent market through partnerships designed to control costs and address supply chain challenges.
Contact HOBI today to get ahead of supply chain shortages and stabilize enterprise supply at 877-814-2620 or sales@hobi.com.