Meta Extends Server Lifespan to 7 Years Amid Chip Shortages

Meta Platforms is extending the operational lifespan of a range of servers in its data centers from six to seven years in response to a "substantial shortage of server hardware," according to Investing.com, citing internal correspondence reviewed by The Wall Street Journal.

Deepening Memory Shortage

This decision reflects a massive chip shortage reshaping the technology industry. By projections, data centers will consume 70% of all produced memory chips in 2026, while manufacturers such as Samsung, SK Hynix, and Micron have pivoted production toward high-margin components optimized for AI. DRAM supply growth is forecasted at just 16% year-over-year—significantly below historical norms.

Synopsys CEO Sassine Ghazi told CNBC in January that the chip "scarcity" is expected to persist through 2026–2027, as most memory produced by top manufacturers is directed straight into AI infrastructure. According to industry research, DDR5 server RAM prices roughly doubled in early 2026 compared to the previous quarter.

For Meta, the practice of extending server lifespans is not new. In early 2025, the company increased the useful life of most servers and network equipment to five and a half years, saving approximately $2.9 billion in depreciation expenses that year alone. This latest extension to seven years is another step in a course started in 2022, when Meta first abandoned its original four-year depreciation schedule.

Fighting for Supplies Across the Stack

Extending server lifespan is just one element of Meta’s response to tightening infrastructure supply conditions. The company is actively diversifying its chip and server procurement. Last week, Meta signed a multi-billion dollar deal to deploy tens of millions of Graviton5 processor cores for AI agent workloads, as lead times for server CPUs have stretched to approximately six months.

In April, Meta expanded its custom chip partnership, committing to supplies of specialized silicon solutions exceeding one gigawatt of power on a 2-nanometer process. Furthermore, the company entered a multi-year, $100 billion agreement covering EPYC server processors and Instinct GPUs, and separately arranged for supplies of Grace processors.

Meta's capital expenditures for 2026 are projected between $115 billion and $135 billion—nearly double that of 2025. TrendForce lowered its full-year server shipment growth forecast from 20% to 13%, citing wait times of 35–40 weeks for power management ICs and baseboard management controllers required to assemble finished servers.