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DigiTimes
Memory supply gap stretches beyond 2028 as cloud capex tops US$725 billion
Cloud service providers have collectively raised capital expenditures to around $725 billion, significantly affecting the memory supply landscape. This surge in spending correlates with an anticipated shift in memory resource allocation towards AI applications. As companies secure long-term agreements, stakeholders are recognizing the need for strategic planning amidst an extended memory supply gap expected to stretch beyond 2028.
MonitorConfidence: HighMid term horizonSupply chain risk: High
Published 6 May 2026, 04:20 UTC1 min read
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Summary
TL;DR
- Cloud capital expenditures rise to $725 billion
- Memory supply gap projected to extend beyond 2028
- Increased focus on AI driving resource allocation
- Suppliers and customers securing long-term agreements
- Shift in memory demand prioritizing artificial intelligence
Interesting facts
- The demand for memory resources is being driven primarily by AI applications.
- Long-term agreements are becoming increasingly common to manage resource scarcity.
Coverage gaps