By: Richie Palma
If you run IBM Power Systems servers or IBM Storage arrays like FlashSystem, you’ve likely seen the recent price increases. Starting on April 1, 2026, IBM raised prices on main memory (DRAM) and flash storage:
- High-end Power10 and Power11 servers (scale-up systems): memory prices up 55%.
- Scale-out systems: memory prices up 30%.
- Flash SSDs in storage arrays: up 30–35%, with some internal server flash options rising as high as 145%.
These increases make new systems and capacity upgrades more expensive right now. The good news? Acting quickly can help you avoid even higher costs later.
The Main Reason: AI Is Driving Massive Demand
Big tech companies building large AI data centers are buying huge volumes of memory and flash storage. They’re locking in supply with long-term contracts, which reduces availability for other customers.
Memory manufacturers (Samsung, SK Hynix, and Micron) are shifting production toward higher-margin AI products, such as high-bandwidth memory for GPUs and premium enterprise components. This leaves less capacity for standard server memory and flash used in IBM Power systems.
The result has been sharp price jumps:
- In Q1 2026, DRAM contract prices rose 90–95% in a single quarter.
- NAND flash prices also increased significantly.
Looking ahead, analysts expect another strong rise in Q2 2026: DRAM prices up another 58–63%, and NAND flash up 70–75%. With new manufacturing capacity still years away, prices are expected to keep climbing through 2026 and into 2027.
Why IBM Power and Storage Are Affected More
IBM Power Systems and IBM Storage use specialized enterprise-grade memory and flash. These components must deliver the high reliability, performance, and availability needed for AIX, IBM i, databases, SAP, and modern AI-accelerated workloads.
Because they compete for the same silicon supply as AI systems, cost increases hit IBM’s supply chain quickly and get passed through to customers. IBM had already raised some maintenance prices in 2025, and the April 2026 hardware adjustments were driven largely by these higher memory and flash costs.
Why It Makes Sense to Buy Now – Before Prices Rise Further
With continued upward pressure on memory and flash pricing, buying now is a smart move if you have upcoming server refreshes, storage expansions, or capacity needs.
Locking in current pricing today can protect you from the next round of increases expected in the coming months. Every delay risks paying noticeably more for the same memory and flash capacity later this year.
Here’s what many successful customers are doing:
Reviewing their hardware refresh and expansion plans right away.
- Working closely with their IBM Business Partner to secure current quotes, explore trade-in programs, and take advantage of available financing.
- Adding memory and flash capacity to existing systems or moving forward with new deployments while pricing is still manageable.
- Taking advantage of any current promotions or volume discounts before they change.
What to Expect Going Forward
This is shaping up to be a multi-year “supercycle” driven by strong AI demand. Prices for memory and flash in the IBM Power ecosystem are likely to remain elevated or continue rising through 2026 and much of 2027. New supply won’t arrive fast enough to bring meaningful relief in the short term.
Bottom line: Memory and flash prices are climbing because of unstoppable AI-driven demand. For IBM Power Systems and Storage customers, the clear message is simple , if you need more capacity or performance, now is the time to act. Buying sooner lets you secure today’s pricing before the next wave of increases hits. Reach out to your IBM Business Partner today to get current quotes and move forward with your upgrades while it still makes strong financial sense. If you don’t have a business partner, or your current partner isn’t being much of a partner, let’s connect. Would be happy to show you value and earn your trust.
Many organizations are making the same decision right now. Don’t wait and pay more later secure your hardware needs today.