Organisations planning IT upgrades in 2026 may have already noticed the cost of computer hardware is rising, and it’s showing no signs of slowing down. Already affecting memory and storage and beginning to affect processors, increasing prices and longer lead times are impacting both businesses and the wider technology market and this is expected to continue into 2027.
What’s happening?
One of the most significant increases has been seen in RAM (memory), which has reportedly doubled in price since October 2025. Storage (SSD and HDD) is also becoming more expensive, and there are strong indications that CPU (processors) prices will rise next, with expected increases of around 10–15% across both server and desktop hardware. Prices often fluctuate according to demand and AI has caused a surge in the demand for these components leading to higher prices.
Alongside rising costs, lead times are also increasing. Components that were once available within a couple of weeks may now take several months to arrive. This is making it more challenging for organisations to plan hardware upgrades and replacements.
What’s causing these price increases?
The primary driver behind these changes is the rapid growth of AI (artificial intelligence) and the expansion of AI-focused data centres.
AI systems require vast amounts of:
- Memory
- Storage
- Processing power
As a result, demand for these components has surged. Manufacturers have shifted some of their capacity into producing the components that AI data centres require, rather than the parts for consumer-grade machines. Manufacturers are also prioritising supplying large-scale data centres – where demand is higher and margins are greater. This shift in production has created a shortage in the supply of key components used in PCs and servers, pushing prices up across the board.
Supply chain challenges
Another important factor is how the market responded in previous years. During 2022–2023, there was a decline in PC sales, leading to an oversupply of components. In response, manufacturers reduced production capacity.
Now, with demand rising again, production hasn’t been able to scale back up quickly enough. Increasing manufacturing capacity is not an overnight process; it can take years to expand facilities and output. This imbalance between supply and demand is continuing to drive price increases into 2026 and beyond, with laptop and server prices increasing as a result of the price hike in components.
What does this mean for consumers?
For buyers, this means:
- Higher costs for new PCs, servers, and upgrades
- Longer waiting times for hardware delivery
- Potential delays to IT projects and refresh cycles
Many businesses are now having to rethink their hardware strategies, balancing the need for modern, reliable technology with rising costs and availability challenges.
Final thoughts
With prices expected to continue rising into 2026 and 2027, planning ahead is key. If your organisation is likely to need new hardware in the near future, it may be worth reviewing your requirements now and considering earlier procurement to avoid further cost increases and delays.
If you’d like advice on hardware planning, budgeting, or procurement, our team is here to help – get in touch to discuss your requirements.