AI Data Center Boom Triggers Widespread Consumer Electronics Price Hikes
February 2, 2026
The explosive demand for artificial intelligence is reshaping global supply chains, with a severe shortage of memory chips emerging as a critical bottleneck. This scarcity, driven by the voracious hardware needs of AI data centers, is now cascading down to consumers, threatening to significantly increase the cost of everyday electronics from laptops to cars. Industry analysts project an unprecedented $3 trillion in capital expenditure on AI data centers between 2025 and 2029. Approximately half of this staggering sum is earmarked for AI-capable hardware, creating intense competition for critical components. Major memory manufacturers like Samsung Electronics, SK Hynix, and Micron Technology are prioritizing production for high-margin AI server modules, diverting supply from the consumer market and creating a historic supply-demand imbalance. The ripple effects are already being felt. In the personal computing market, the price of DRAM kits has soared. An analysis tracking popular memory modules since September 2025 found an average price increase of 344%. Solid-state and hard drive costs have also risen sharply, with one PC manufacturer, CyberPowerPC, noting a 100% increase in SSD prices by December 2025. Research firm IDC estimates overall PC prices could rise by up to 8% this year, though some manufacturers warn of potential increases as high as 15-20%. The smartphone sector faces similar pressures. Analysis indicates the bill of materials for entry-level phones jumped 20-30% in 2025. IDC links this directly to memory costs, which can constitute up to 20% of a phone's total component cost, and forecasts smartphone prices rising up to 8% this year. Carl Pei, CEO of smartphone maker Nothing, offered a starker outlook, stating on social media platform X that memory prices have surged by as much as 300% due to AI infrastructure demand and could become the "single largest cost driver in the bill of materials by year-end." He anticipates manufacturers will be forced to raise prices by up to 30% or downgrade specifications. The automotive industry, increasingly reliant on chips for advanced driver-assistance systems and digital cockpits, is also vulnerable. Research from S&P Global suggests the RAM shortage could strain automotive supply chains, leading to tighter component allocation, longer lead times, and higher production costs, particularly for high-end vehicles with advanced autonomy features. While the impact may not be immediate, prolonged scarcity could affect vehicle pricing and availability. Even consumer electronics like televisions are not immune. Samsung Electronics, the world's largest DRAM manufacturer, has publicly acknowledged the crisis. Co-CEO T M Roh described the situation as "unprecedented," stressing that "no company is immune to its impact," and confirmed TVs would be affected. Research firm Omdia reports that memory used in TVs has already increased in price by 50%, a cost expected to be passed on to consumers, with new model pricing becoming clear in the spring.
Source: BGR
