RAM Emerges as the ‘New Oil’ as AI Boom Drives Up Memory Costs

The rapid expansion of artificial intelligence is creating a new challenge for the technology industry, with soaring demand for computer memory pushing up the price of RAM and raising concerns about higher costs for consumers and businesses. Zoho chief scientist Sridhar Vembu has warned that memory, rather than data, could become the most important resource in the evolving digital economy.
Vembu recently highlighted the sharp increase in RAM prices, pointing to a rise of nearly 500% over the past year. The surge is being driven largely by the growing requirements of AI systems, which depend on large amounts of high-speed memory to train and operate increasingly sophisticated models.
The development is beginning to affect the broader technology supply chain. While memory is a key component in smartphones, laptops and personal computers, it is also essential to data centres that power cloud services and artificial intelligence applications. As companies invest heavily in AI infrastructure, manufacturers are directing greater production capacity towards high-performance memory, putting pressure on supplies available for conventional electronics.
The impact could eventually be felt by consumers through higher prices for electronic devices and technology services. The pressure is not limited to RAM. Growing AI infrastructure requirements are also increasing demand for storage equipment, advanced chips and other data-centre components. Even materials such as copper, which are extensively used in networking and electrical infrastructure, are facing increased demand as companies build larger computing facilities.
Memory manufacturers have indicated that supply constraints could continue for several years as production capacity takes time to expand. This has raised concerns about whether the global semiconductor industry can increase output quickly enough to match AI-driven demand. As the country expands its digital economy and seeks to strengthen its position in artificial intelligence, dependence on imported computing components could become an important vulnerability. Ensuring reliable access to memory, semiconductors and other critical hardware may therefore become increasingly important.
The changing economics of computing also challenges the long-standing idea that “data is the new oil”. With AI systems consuming enormous amounts of computing power and memory, access to physical infrastructure is becoming just as crucial as access to data.