SYRACUSE, N.Y. (NCC NEWS) — Consumers are paying more for technology, such as computers and gaming consoles, as the exponential growth of artificial intelligence creates a global shortage of computer memory.
With the rapid development of AI, there is now a higher demand for random-access memory (RAM). RAM acts as a computer’s short-term memory that allows devices to process information quickly. AI data centers rely on large amounts of memory to load models, process information, and generate responses in near real time.
The push to expand artificial intelligence and build data centers is unlike anything Syracuse University assistant vice president of data and AI Andrew Joncas has seen before.
“People’s interest in using artificial intelligence is through the roof,” Joncas said. “It’s the most quickly adopted technology ever seen on the planet. The iPhone and the internet don’t even touch it in terms of adoption.”
However, this surge of interest appears to come with rising hardware costs, especially as companies invest in hardware and new data centers.
While the AI industry continues to expand, other industries are feeling the impact. Before these shortages, RAM was around 15 percent of the total cost of materials for most devices. Currently, the cost is approaching 58 percent, according to a report by Tom’s Hardware. This has taken some of the cheapest options available from just under $70 to more than $250.
This has driven up prices or slowed production for devices that rely on RAM, including PCs, laptops, gaming consoles, modern vehicles, and smartphones. The trend is already reflected in recent price increases from major tech companies.
Sony increased the price of its base PlayStation 5 model by $100 on April 2. Dell and HP have also announced price hikes tied to ongoing shortages. Samsung’s recently released Galaxy S26 costs $100 more than last year’s model.
Those price increases aren’t just affecting global corporations. Even local businesses like Express IT Solutions in Fayetteville are taking a hit. The company can no longer build custom PCs for customers, and upgrading computers for clients has become more expensive than ever.
“We have small businesses that have put certain tech projects on pause because of the significant increase in hardware costs,” said William Mahoney, co-owner of Express IT Solutions.
But Mahoney did express hope with the arrival of Micron in Central New York.
Micron is the only American dynamic RAM (DRAM) manufacturer and the third largest globally. While the company has been focusing on AI development, some believe that this could help resolve the issue.
“If you look back through history, we always come up with interesting ways to solve problems,” Joncas said. “The next most valuable company will be the company that figures out how to do this computing more efficiently. Because if you either reduce the amount of memory, or you reduce the power to do the same thing, people don’t have to wait anymore.”