UBS: Global AI Capex to Reach $1.4 Trillion by 2027, Driven Primarily by Memory Costs

UBS projects that global AI capital expenditure will approach $1 trillion in 2026 and climb to approximately $1.4 trillion by 2027. The firm attributes this growth largely to a surge in memory costs, which are estimated to jump from $71 billion in 2025 to $367 billion this year, and further to $923 billion by 2027. Memory costs are expected to account for roughly 60% of the AI capital expenditure increase this year, with memory cost growth projected to exceed the total net increase in AI capital expenditure by 2027 as other component spending declines.