[German]European cloud provider Hetzner is currently informing customers about a price increase for its cloud packages. This is justified by price increases for RAM, SSD, etc., as a result of the AI hype. Here are the details about this topic.
Crazy price increases due to AI hype
Prices for RAM modules and other components such as SSDs are currently skyrocketing on the market. The reason for this is the AI hype, which is leading to RAM modules being bought up by operators of large AI data centers and used in these data centers.
I already addressed this topic in November 2025 in the article OVH-CEO rechnet 2026 mit Kostensteigerungen in der Cloud von 5-10 % (use translation to read the text). The head of cloud provider OVH expects prices for cloud services to rise by 5-10% in 2026. The reason for this is demand in the AI sector. Total global production capacity is shifting to the highly profitable memory used in GPUs for AI applications. Memory manufacturers have already switched their production to HBM memory for GPUs.
Market observers at IDC assume that these bottlenecks will continue until 2027 – I would even guess that there will still be bottlenecks until 2028.
Hetzner informs customers about price increase
I had already read about it a few days ago: customers of the hosting and cloud provider Hetzner are currently being informed about price increases for existing cloud package contracts. I just received a letter to this effect (see image below).
The provider informs customers that it will have to raise its prices on April 1, 2026, due to the drastic increase in costs in various areas "over the past period." Both the operating costs for infrastructure and the procurement costs for new hardware have risen.
Hetzner cites the sharp rise in global demand for AI computing power and cloud services as the reason for these cost increases. The cost of RAM and SSDs has risen dramatically, increasing by 500% since September 2025. As a result, the provider feels compelled to adjust prices for new orders and existing customers as of April 1, 2026 (no premature April Fool's joke). Hetzner has published this table with a list of old and new prices.
