OVH Cloud warns of 87% price hikes to help it cover RAMpocalypse costs
European cloud provider OVHcloud has announced significant price increases for its server rental services, citing soaring component costs driven by the global AI boom. This move by the French company underscores the inflationary pressures impacting the digital infrastructure sector and highlights potential shifts in the competitive landscape.
The price hikes, set to take effect from September, will see up to an 87% increase for new server rentals, with "2026-edition gaming servers" facing the steepest rise. These adjustments are a direct response to a dramatic surge in the cost of essential hardware components; memory prices have sextupled in the year leading up to June 2026 and are projected to reach nine times their previous cost by September, with further increases anticipated. Similar significant cost escalations are reported for NVMe drives, hard disks, CPUs, motherboards, and network cards, forcing OVHcloud to pass these expenses onto its customers to maintain service delivery and fulfill new orders.
These pricing changes will affect a broad range of customers, from gaming enthusiasts to businesses relying on OVHcloud for their digital operations. Existing customers renewing contracts will experience a less severe increase compared to new clients, with the company also introducing a decoupling of storage and IP addresses from instance costs from October 1st, leading to separate billing items. The removal of shorter-term price-locking plans also signifies a move towards longer-term commitments for customers seeking cost stability.
The situation at OVHcloud is indicative of wider trends within the cloud computing industry, with industry observers suggesting that major players like Azure and AWS may soon follow suit with similar announcements. This scenario could create opportunities for smaller, agile European cloud providers to assert their positions and cater to a market seeking more stable or predictable pricing structures. The projected duration of these elevated costs, potentially extending to 2028, will necessitate strategic planning for businesses heavily dependent on cloud infrastructure.
Curated and translated by Europe Digital for our multilingual European audience.
Why this matters for European digital sovereignty
European cloud provider OVHcloud faces significant price hikes due to soaring component costs, impacting its server rental services. This situation highlights inflationary pressures within the digital infrastructure sector and potential shifts in European tech strategy. The French company's adjustments reflect broader market dynamics affecting European businesses reliant on cloud services.
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