OVHcloud will raise prices across most of its catalog this autumn, with some customers facing increases as steep as 87 percent, according to a report published by InfoQ on August 23, 2026. The cloud provider traces the surge to AI infrastructure demand pulling fabrication capacity away from standard server components, creating what founder Octave Klaba calls an exceptional situation that will persist through 2028.
The component cost increases hit OVHcloud's purchasing hard, with memory indexed at 604 by June 2026 compared to June 2025, SSDs reaching 323, and hard drives climbing to 148. Klaba states the company is now paying six times what it paid for RAM a year earlier, with projections pointing to nine times by September 2026 and twelve times by early 2027. NVMe drives have jumped to seven times their previous cost while hard drives sit at 3.5 times, and Klaba reports expectations that CPUs, motherboards, and network cards will climb 15 to 20 percent. Customers renting 2026-edition gaming servers face the sharpest price jump at 87 percent starting in September, while other recent servers will see 40 to 59 percent increases. Those on 2024-era equipment encounter smaller rises at renewal, which Klaba describes as three to six times lower than new orders, and older product lines including Kimsufi, Rise, and earlier Advance and Scale generations remain unchanged, as they were during an April price adjustment.
Klaba attributes the pressure to three global RAM suppliers reconfiguring factories toward high-bandwidth memory, which serves GPUs and delivers better margins, at the cost of standard DDR4 and DDR5 production. He states the company couldn't absorb the costs because "the main concern we want to avoid is running out of parts and not being able to deliver the Cloud to you." The report notes OVHcloud operates under a disadvantaged procurement position, ordering month by month over 12-month cycles with no guaranteed purchase price and uncertain customer demand, while hyperscalers like Amazon contract for memory years ahead in volumes that secure priority allocation. Amazon has left most of its catalog untouched, raising only EC2 Capacity Blocks for ML by roughly 20 percent in July after about 15 percent in January, a disparity the report explains through procurement scale and vertical integration.
The component squeeze erodes OVHcloud's competitive positioning, with Klaba acknowledging that where the company could previously offer prices three times cheaper than competitors, it will now be only twice as cheap "if our competitors don't increase their prices." That margin compression arrives as public sector migration programs across Europe increasingly favor sovereign providers on jurisdictional grounds, with affordable infrastructure forming a quiet pillar of underlying business cases—InfoQ notes Airbus made protection from non-European extraterritorial law a scored criterion in its cloud tender. The report warns that elevated component prices extending through 2028 sit beyond the planning horizon of most European migration programs currently underway, and while memory markets cycle and will eventually crash as sharply as they've spiked, budgets drafted during the spike will remain fixed. Customer reactions centered less on the increase itself than on frequency, with two price rises inside six months turning capacity planning into what the report describes as a rolling negotiation. Providers buying commodity components on short-term contracts face exposure that deep-pocketed hyperscalers designing their own accelerators simply don't carry, and that structural gap may reshape which cloud models can weather supply shocks without passing volatility directly to customers.