What’s Happening in the Global Hardware Market?
If you’ve recently tried to order a new server or upgrade your data center infrastructure, you’ve probably noticed that something has changed. Hardware prices have jumped by double digits, lead times have stretched well beyond six months, and costs keep climbing. In this article, we’ll break down what’s happening, why it’s happening, and what you can do about it.
The short version: AI is consuming everything. The world’s largest data centers – AWS, Google, Microsoft, and AI companies like NVIDIA – are buying enormous quantities of memory, processors, and storage. The result? Approximately 70% of global memory production in 2026 is directed toward data centers, leaving very little for everyone else.
The Numbers Speak for Themselves
- Server DRAM – prices up 90-95% in the last quarter alone. DDR5 has surged significantly since early 2025.
- Full server delivery times – extended from 10-12 weeks to over 24 weeks.
- Enterprise 30TB SSDs – prices jumped over 250%.
- Complete servers from Dell and Lenovo are up 15-20%.
- Full server systems including RAM and storage – increases of up to 70%.
What Does This Mean for the Israeli Market?
Israel is one of the fastest-growing data center markets in the world. The local data center market grew tenfold between 2020 and 2025, reaching $2.58 billion, and is projected to continue growing to $3.96 billion by 2031. The takeaway: demand for IT equipment in Israel is only increasing.
So What Can You Do?
Plan ahead – If you know you’ll need to upgrade infrastructure in the next year or two, order now. Lead times will continue to extend.
EOL and alternative equipment – Equipment that’s been discontinued can be an excellent solution. A server approaching end-of-life can often be sourced through EOL procurement at a fraction of the original price.
OEM-compatible equipment – A cost-effective alternative to original equipment that has become expensive. Compatible components are certified and perform at the same level, at a fraction of the cost.
Global sourcing – Instead of depending on a single distributor, work with a supplier that checks sources across the US, Europe, and Asia for every order.
How TACT Helps
At TACT, we deal with this reality every day. With 20+ years of experience and a global supply network, we know how to find equipment when others can’t. We’re not tied to any single manufacturer – we check suppliers across the US, Europe, and Asia to find the best price for you.
Need help sourcing equipment? Talk to us – +972-54-4770274 | udi@tactgroup.co.il
