OVH Cloud warns of 87% price hikes to help it cover RAMpocalypse costs

OVH Cloud CEO Octave Klaba has announced that the cloud operator will increase server rental prices by up to 87 percent to cover the rising costs of memory and other hardware components. Memory prices have surged six times in the past year, with NVMe drives seeing a seven-fold increase and hard disk prices rising 3.5 times. CPU, motherboard, and network card costs have also jumped by 15 to 20 percent.

Klaba attributes these price hikes to the AI boom and hyperscalers' aggressive buying. He expects further increases in the near future and blames the company's need to pass on its increased costs to customers for the price hikes. The most significant price jump will affect 2026-edition gaming servers, whose bills will rise by 87 percent from September.

Other recent servers will see a 40 to 59 percent price increase. OVH will also alter its pricing structure, charging separately for storage and IP addresses from October 1st. The company will no longer offer one-month, six-month, or 24-month saving plans, but will continue to offer 12 and 36-month plans. Klaba apologized for the price increases, stating that the company must continue to deliver new orders despite the high costs.

He expressed hope that prices will return to normal by 2029, but warned that the situation could persist until then.