Facebook and Amazon are causing a memory shortage

If you’ve noticed a considerable increase in the price of memory in the last few months, you can thank (or blame) Amazon, Facebook, and Google. The explosion in growth among hyperscale data centers is great if you are a supplier of components to these companies, not so great if you are buying those same components.

According to DRAMeXchange, a division of market researcher TrendForce, the price of server DRAM will continue to rise as the supply remains tight in the first quarter of this year. The server DRAM market has seen tight supply since the third quarter of last year due to massive construction projects by the data center market, especially the hyperscale data centers, data centers that are bigger than a football field.

This has caused memory demand to soar beyond expectation, leading to price hikes. And new production capacity will not be available until the second half of the year, resulting in a tight supply and increasing prices for at least the first half of this year, according to TrendForce’s estimation.

One bright spot in the predictions is that production of 2133MHz products, the standard memory speed for server DIMMs, will be overtaken by memory with a higher clock rate (2666MHz and 2400MHz), so higher bandwidth server modules will become the mainstream products.

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