Technology leaders are entering 2026 in a very different hardware market than the one that existed just a few years ago. Hardware pricing across servers, PCs, storage, and memory is becoming increasingly volatile, and several global trends are driving this shift.
Global IT spending is projected to reach $6.15 trillion in 2026, representing a 10.8% increase from 2025. Much of this growth is tied to rapid investment in artificial intelligence infrastructure, particularly in data centre systems and servers. As AI initiatives move beyond experimentation and into large-scale deployment, major enterprises are committing significant capital to build the computing environments required to support these workloads.
At the same time, several market indicators show how dramatically the hardware landscape is shifting.
These numbers illustrate a fundamental change in the economics of hardware. Organizations are facing rising costs, longer lead times, and increased uncertainty when planning infrastructure refresh cycles.
Hardware Price Pressure Is Already Reaching the Channel
Manufacturers and distributors have recently notified partners that hardware pricing increases are expected and may continue throughout 2026 and into 2027. These changes are largely driven by global supply chain pressures affecting critical components such as processors, memory, and storage.
As a result, products including servers, laptops, desktops, and networking equipment may experience price adjustments throughout the year.
Distributors are also warning that supply chain disruptions are significantly altering the technology channel. With memory prices increasing sharply and suppliers prioritising higher margin markets, organizations may encounter shorter quote validity windows and longer lead times for certain hardware configurations.
AI Infrastructure Is Reshaping Hardware Markets
The rapid expansion of artificial intelligence is one of the most significant drivers of hardware price volatility.
AI workloads require far greater computing power, memory, and storage than traditional enterprise applications. Large language models, data training pipelines, and real-time inference systems all demand infrastructure that is significantly more resource-intensive than typical business workloads.
As a result, semiconductor manufacturers and hardware vendors are prioritising production for hyperscale data centres and large AI deployments. Micron, a leading global manufacturer of semiconductor memory and storage solutions, exited the crucial consumer business last December to support larger strategic businesses, and recently, the Executive Vice President and Chief Business Officer reported that the company is sold out for 2026. Similarly, Western Digital has indicated that they are sold out of hard drives for 2026.
This shift is already visible in market activity. Dell reported a 342% increase in revenue from AI-optimised servers along with a $43 billion backlog of orders.
For organizations planning hardware purchases, this shift has several implications.
- Hardware refresh cycles may cost more, particularly for servers and workstations requiring large memory pools
- Some devices may ship with lower memory configurations to control costs
- Lead times may increase as suppliers prioritise high-value AI customers
Raw Materials and Geopolitical Pressures
Hardware pricing is also influenced by geopolitical tensions and the availability of critical raw materials.
Export restrictions on minerals such as gallium and germanium, which are essential for semiconductor manufacturing, have added additional cost pressure to the global technology supply chain.
These restrictions introduce a scarcity premium into the production process. Even if supply conditions improve, the baseline cost of producing advanced hardware is likely to remain higher than in previous years.
In addition, the cost of energy and advanced manufacturing processes continues to rise, further contributing to the long-term increase in hardware pricing.
What This Means for Businesses
The hardware market in 2026 reflects a structural shift rather than a short-term disruption.
Organizations should expect continued volatility in pricing for servers, storage, and endpoint devices. Hardware quotes may remain valid for shorter periods, and certain configurations may require longer lead times.
At the same time, hardware may become a larger share of total IT spending than it has been for many years.
The Importance of Strategic Planning
Because of these changes, infrastructure planning should be approached strategically rather than reactively.
Working with an advisor can help organizations plan for market volatility and make informed decisions about when and how to invest in hardware. This includes forecasting refresh cycles, aligning infrastructure investments with long-term business goals, and evaluating hybrid architectures that balance on-premises systems with cloud platforms.
Organizations that plan ahead will be better positioned to manage costs, avoid supply disruptions, and maintain stable operations even as the hardware market continues to evolve.
