While browsing our website a few weeks ago, I stumbled upon “How and When the Memory Chip Shortage Will End” by Senior Editor Samuel K. Moore. His analysis focuses on the current DRAM shortage caused by AI hyperscalers’ ravenous appetite for memory, a major constraint on the speed at which large language models run. Moore provides a clear explanation of the shortage, particularly for high bandwidth memory (HBM). As we and the rest of the tech media have documented, AI is a resource hog. AI electricity consumption could account for up to 12 percent of all U.S. power by 2028. Generative AI queries consumed 15 terawatt-hours in 2025 and are projected to consume 347 TWh by 2030.

Water consumption for cooling AI data centers is predicted to double or even quadruple by 2028 compared to 2023. But Moore’s reporting shines a light on an obscure corner of the AI boom. HBM is a particular type of memory product tailor-made to serve AI processors. Makers of those processors, notably Nvidia and AMD, are demanding more and more memory for each of their chips, driven by the needs and wants of firms like Google, Microsoft, OpenAI, and Anthropic, which are underwriting an unprecedented buildout…