AI Boom Drives Up to 200% RAM Price Surge in Andorra Amid Shortages

The surge in artificial intelligence demand has driven up prices for essential computer components, with RAM memory modules seeing increases of up to 200% due to shortages caused by data centres operated by major tech firms.

Local IT specialists in Andorra report that the rapid expansion of AI infrastructure has consumed much of the global RAM supply, leaving less available for consumers and businesses. This has directly raised the cost of computers, laptops, and even smartphones. Marco Sousa, a salesperson at Microsistemes Principat, noted that a standard 16GB RAM module, previously priced around €50, can now cost up to €500. High-capacity models for professional use often exceed €2,000.

Experts predict the trend will persist at least until 2028, as large technology companies continue prioritising AI production. "We always explain to customers that this situation could last years and prices will keep rising," Sousa said, adding that manufacturers find greater profitability in supplying the AI sector.

Consumers are adapting by turning to second-hand markets or older-generation parts that remain affordable. Javier García, a technician at Megahertz Informàtica, observed that many people are returning to the used market to upgrade equipment without facing the new costs. Others are simply waiting for market stabilisation, though professionals warn against expecting quick relief. Bernat Rodríguez, manager at SIL Informàtica, said the price hikes have become noticeable recently but were building for months. He cautioned that once existing stockpiles run out, buyers will have to accept the elevated rates, with little sign of the market balancing soon.

Some frustration centres on larger retail chains accused of inflating margins amid the scarcity. Sousa highlighted that while working with the same wholesalers as major Spanish outlets, he has seen certain chains raise prices far beyond typical levels. Local merchants insist they are holding steady on their own margins despite the global pressures.

Graphics cards face a similar plight. High-end GPUs from Nvidia, critical for AI model training, have doubled in price from €2,000 to €4,000 and are scarce for average users. This follows earlier shortages from cryptocurrency mining operations, compounded by limited production and rising material costs. Analysts expect these elevated prices to endure for years.