TREE NEWS reports: UBS now expects global AI capital expenditure to approach $1 trillion in 2026 and climb to about $1.4 trillion in 2027, with rising memory costs as the main driver. Memory-related spending is projected to jump from $71 billion in 2025 to $367 billion this year and $923 billion in 2027. Memory cost inflation accounts for roughly 60% of this year’s AI capex increase, and by 2027 will exceed the entire net increase in AI capex as other component spending declines.
UBS: Global AI Capex to Hit $1.4T by 2027, Memory Costs Drive 90% of Growth
AI take
The striking element is not the headline figure but the composition: memory inflation alone is doing most of the heavy lifting, and by 2027 it outpaces the net increase in AI capex as other components shrink. That reframes the buildout as increasingly a memory-cost story rather than broad-based hardware demand, with budget pressure concentrated on the buyers funding it. Whether that spending mix persists, or whether softer non-memory components signal a broader capex plateau, is the open question worth tracking.
Generated by AI for reference only.
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