Inside AI Infrastructure’s Affordability Crisis And Its Rising Risks

InnovationCloudInside AI Infrastructure’s Affordability Crisis And Its Rising RisksByR. Scott Raynovich,Contributor.Forbes contributors publish independent expert analyses and insights. R. Scott Raynovich is the Founder and Chief Analyst at Futuriom.comFollow AuthorMay 13, 2026, 12:22pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Micron stock has risen 1,000% in the past three years on the back of the memory pricing boom. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesAfter a red-hot inflation report this week that showed the annual consumer price index rising to 3.8%, affordability is on people’s minds. But plain-old consumer inflation pales in comparison to the inflation in data centers. In the technology markets, inflation is all over the place, most notably in the stratospheric rise in technology components such as memory and storage devices, sales of which are driven by the AI capital spending boom. This is driving inflation in stock prices as well, as memory stocks such as Micron and Sandisk lead the current rally. The key building blocks of data centers, including memory, storage, and AI, have been vaulting higher at rates as high as 90% per quarter. This has been a boon for memory companies such as Micron, whose stock has shot up 1,100% in three years. It’s of course unknown when this red-hot market will cool off, but one thing should be noted: The inflation component of the tech rally isn’t necessarily good, just like inflation in your car insurance isn’t good. Rising costs create more risks for markets, because it’s hard to measure and predict how much inflation is driving a temporary, and unsustainable, illusion of growth. Memory, The Most Popular CommodityWhen stuff costs more, that’s not necessarily good. Memory prices are famously volatile, and the technology is generally considered a commodity. That mean...