Dell, HPE server supply upended by memory crunch

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Dell Technologies and Hewlett Packard Enterprise face shortages of memory components as demand for AI servers increases among enterprises and data centers, executives recently said on separate earnings calls.

Although they face similar challenges, the two computer makers are taking slightly different tacks toward memory limitations. Dell is prioritizing large strategic customers, while HPE is working with memory partners to secure supply and lock in capacity through long-term agreements.

According to the Global Electronics Association, a historic structural disruption in the memory market is driving the current supply crisis. Manufacturers are shifting production to high-bandwidth memory for AI infrastructure, reducing production of the conventional server memory that businesses rely on to run…