Hyper Datacentre Boom and The Associated Memory Shortages

News & Technical Blog

There is a huge growth in hyper scale datacentres, which has led to an increase in the price of memory in recent months. According to DRAMeXchange, Server DRAM revenue rose by 76% in 2017, and it is expected to increase by an additional 30% in 2018. This increase is good news for the suppliers of these components, as the market for DRAM sees a tight supply since mid-2017. This is due to large structure projects by the datacentre market, particularly the hyperscale datacentres.

In the past year, the demand for memory has risen beyond expectancy, which has led to supply issues, increasing pricing across the board. Large corporations providing cloud options such as Amazon and Microsoft are purchasing hundreds of thousands of server components every year as demand grows, which could be exacerbating shortages in stock.

Datacentre growth has a huge impact. Deloitte Technology reported that spending on IT services for datacentres for software and services will reach over half a billion dollars by the end of 2018, which represents more than half of IT spending by 2021/2022.

Cloud computing on the rise

With more and more SMB/ large/ corporate organisations now heavily involved in cloud computing, there is now potentially an exponential growth in the need for hyper scale datacentres.

What is a hyperscale datacentre?

A hyperscale datacentre by definition is a datacentre with a minimum of 5,000 servers and that covers a minimum 10,000 square feet in size, although they are usually larger. According to Synergy Research, there are nearly 400 hyperscale datacentres around the world, which is expected to rise to 500 within the next two years, and at least 69 more in various stages of planning or construction.

Large global corporations such as Amazon, Microsoft and Google are building the most hyper scale datacentres as well as being the biggest players in the public cloud market. The hardware requirements are on a grand scale. For example, Amazon alone are estimated to have purchased 1/4 million servers within 3 months of 2017.

According to Synergy Research 44% of datacentres world are located in the U.S. On average, each of the cloud providers (Amazon, Google etc.) has 45 or more datacentre locations with at least three in each of the four regions of America. Computer software giants Oracle also have a wide datacentre presence.

In light of the largest organisations looking to source memory from an already highly demanding market, it could be some time before the price of memory stabilises.

If you or your business have high memory requirements, VooServers are able to provide single chassis’ with support for up to 2Tb of RAM each, in any of our global points of operation. Please contact our Sales Team on sales@vooservers.com to discuss available options.


By on March 27th, 2018