A European Problem Requiring Immediate Action: Establishing a European IT Hardware Price Index

The rapid evolution of global technology markets — driven by artificial intelligence (AI), geopolitical developments, and supply-chain disruptions — has resulted in heightened volatility in the prices of critical IT hardware components.

This volatility creates material challenges for companies delivering public- and private-sector projects across the European Union, particularly in procurement processes, where binding pricing commitments are often required months in advance.

We propose the immediate establishment of a European IT Hardware Price Index — published by Eurostat in partnership with DG CONNECT and the European IT industry — to serve as a transparent and reliable benchmark for monitoring price movements and supporting balanced contractual practices across all 27 Member States.

Over recent years, the European IT sector has experienced:

• ▸Significant and unpredictable price fluctuations in key components (e.g. RAM, CPUs, storage, GPUs)
• ▸Increased demand driven by AI infrastructure and data centres
• ▸Supply-chain instability due to geopolitical tensions and global disruptions
• ▸Limited validity periods for supplier quotations
• ▸Frequent delays and, in some cases, cancellation of orders

As highlighted by industry stakeholders, these conditions have led to:

• ▸Increased financial risk for companies
• ▸Reduced participation in public tenders
• ▸Project delays or implementation challenges
• ▸Difficulty in maintaining pricing commitments over extended project delivery cycles

This issue is particularly critical in public procurement, where rigid contractual frameworks do not adequately account for rapid market changes.

It is proposed to explore the establishment of a European IT Hardware Price Index, which would:

Track price developments of key IT hardware components, including:

• ▸RAM (e.g. separate series for DDR4 and DDR5)
• ▸CPUs
• ▸Storage devices (e.g. separate series for HDD, SSD and NVMe)
• ▸GPUs and AI accelerators

Be published periodically (e.g. monthly or quarterly) by a relevant European body (e.g. Eurostat or in collaboration with DG CONNECT). Serve as a reference benchmark for:

• ▸Public procurement contracts
• ▸Large-scale IT projects
• ▸Framework agreements involving hardware supply

The index could be used to support:

• ▸Price-adjustment clauses in procurement contracts
• ▸Risk-sharing mechanisms between contracting authorities and suppliers
• ▸Improved transparency in pricing evolution
• ▸Fair and sustainable participation of companies in tenders

For example, predefined thresholds (e.g. +20%, +30% increase) could trigger contract review or price-adjustment mechanisms.

• ▸Enhance resilience of the European digital economy
• ▸Support the successful delivery of digital transformation projects
• ▸Reduce project failures and procurement inefficiencies
• ▸Promote fairness and transparency in the market
• ▸Strengthen trust between public authorities and private-sector suppliers

Eurostat publishes the Industrial Producer Price Index (PPI), which is valuable at the macro level but does not capture market-level pricing dynamics for specific IT hardware categories such as DDR5 modules, NVMe drives or AI accelerators.

DG CONNECT leads EU policy on digital transformation, AI and semiconductors (including the EU Chips Act), but does not maintain a structured pricing benchmark for IT hardware markets actually traded by European buyers.

Private indices (TrendForce, DRAMeXchange, Context) are paywalled, US-centric and not admissible as a contractual reference in EU public procurement.

The result: there is no neutral, public, EU-governed reference that a tender clause can point to. The proposed Index closes that gap.

We have built and published a public Tender Simulator alongside this letter. It allows any procurement officer to enter a contract value, duration and component basket (RAM / CPU / Storage / GPU) and compare:

• ▸A fixed-price contract signed on day one (today's typical EU practice)
• ▸An indexed contract using the proposed European IT Hardware Price Index

Across 2023–2026 historical data, indexation reduces realised supplier risk premia by an estimated 8–14% on hardware-heavy frameworks while protecting contracting authorities from worst-case overruns. The tool is available at /simulator.

To make this initiative bottom-up rather than imposed, we have opened a public consultation channel at /consultation where ministries, contracting authorities, integrators, SMEs and trade associations across the 27 Member States can register their formal endorsement of the Index and submit comments on its scope and governance.

Aggregated endorsements will be transmitted to DIGITAL EUROPE, DG CONNECT and Eurostat on a quarterly basis.

Recognising that this proposal must travel — to the Commission, to the Parliament's ITRE committee, to national procurement bodies and to the trade press — we have assembled a complete press kit at /press including:

• ▸A four-page PDF summary of this proposal, ready for circulation
• ▸High-resolution charts of the 2023–2026 EU spot price series
• ▸Per-section social cards (OG images) for LinkedIn and X
• ▸Quotable statistics and a fact-sheet for journalists
• ▸Logo and visual identity files of the proposed Index

We respectfully request that DIGITAL EUROPE:

1. Place the European IT Hardware Price Index on the agenda of the next Members' Council and the next exchange with DG CONNECT.
2. Co-sign, with European industry associations, a joint letter to the European Commission requesting a feasibility study by Eurostat.
3. Convene a technical working group with industry, Eurostat and Member State procurement bodies to define methodology and governance within six months.
4. Pilot the Index on three categories (DDR5 modules, enterprise NVMe, AI accelerators) within twelve months.

The price volatility of IT hardware is no longer a technical procurement issue — it is a barrier to delivering Europe's digital decade. The instruments required to address it are modest, well-precedented (the EU already maintains indices for energy, construction materials and agricultural commodities) and implementable within the current Commission's mandate. What is missing is the decision to act. We urge DIGITAL EUROPE to take that decision now.