Industry Coalition Warns AI Data Centers Are Tightening Memory Supply
Data Center Knowledge, Friday, June 5th, 2026
An industry coalition urges U.S. policymakers to expand memory production as AI data centers strain chip supplies.
A cross-sector coalition including telecom, automotive, medical device, and retail groups has warned the Trump administration that expanding AI data center operations are straining memory chip supplies and driving price increases across industries.
In a letter to the Commerce and Treasury secretaries, the groups noted manufacturers are fully allocated on capacity while shifting production toward high-margin AI and server products. This reallocation drove DRAM contract prices up 93-98% quarter-over-quarter in early 2026, affecting broadband infrastructure, vehicle production, and medical device manufacturing.
Rather than restricting data center growth, the coalition recommends expanding memory production capacity, strengthening supply-chain cooperation through trade agreements, and reviewing CHIPS Act programs.