AI Power Shortages Could Slow Memory Demand and Lower RAM Prices

Windows 11's 26H2 update appears to reduce system memory usage, potentially helping PCs with 16GB of RAM manage workloads without requiring a memory upgrade. At the same time, power shortages could affect AI data center expansion, potentially slowing memory demand and shifting current pricing trends.

According to a report from Windows Latest and Reddit users, Microsoft's Windows 11 26H2 update appears to reduce the amount of RAM the operating system uses. Windows Latest tested the update on a laptop with 16GB of memory and found that, after a restart, Windows used around 7GB of RAM.

Windows 11 26H2 Update Appears to Reduce RAM Usage.

Other users have reportedly seen around 2GB less memory being used, with some reporting reductions of up to 3GB. The change also appears to extend beyond an idle desktop. Windows Latest opened Teams, Outlook, WhatsApp, a 4K 60fps YouTube video, and Microsoft Edge with several demanding tabs.

Despite running these applications, memory usage remained at around 87%. Previously, even lighter workloads could push the same laptop to approximately 95%. Whatever this update is doing also appears to free up RAM during normal use. Windows normally uses spare memory to cache files and data it expects applications to need later, so high memory usage isn't necessarily a problem.

Cached standby memory is generally counted as available memory and can be reclaimed when an application needs it. However, the reports show less actual in-use memory in Task Manager. This suggests that the change may not simply involve Windows caching less data. The reduction also appears to persist even when several applications are running and consuming memory.

Interestingly, Microsoft's update documentation does not mention this apparent reduction in RAM usage. However, the update includes other performance-focused features, such as a low-latency profile that can launch applications faster by boosting the CPU clock to its maximum for 1–3 seconds. This feature also works with the Start menu and other parts of the operating system.

Microsoft has used more RAM over the years as Windows has grown heavier. An update that returns some of that memory to users could therefore make a difference for existing systems. If these results hold up across more devices, PCs with 16GB of RAM could feel less constrained without requiring a memory upgrade.

RAM prices could also face pressure from a separate problem affecting AI companies: electricity availability.

According to Morgan Stanley's estimates, the US could face a power shortfall of around 5GW in 2026. That figure could increase to approximately 12GW in 2027 before reaching 33GW in 2028. These estimates account for several ways companies could attempt to address the problem, including additional grid capacity, on-site power generation, fuel cells, and nuclear power. 

Morgan Stanley estimates that the AI hardware expected to be deployed through 2028 could require around 97GW of additional power. This isn't a problem that might emerge several years from now. According to the firm's projections, the shortfall has effectively already begun and could increase from here.