AI boomfor driving up component prices across the industry.
How Much Prices Are Rising
Octave Klaba, OVH Cloud’s CEO, confirmed the upcoming price hikes and said the increases are necessary to cover rapidly escalating hardware expenses. The new pricing structure takes effect in September for new orders.
- Gaming servers from 2026: Bills rising by 87 percent, the steepest jump
- Other recent servers: Increases between 40 and 59 percent
- 2024-era equipment renewals: Smaller increases, reportedly 3 to 6 times lower than new orders
What’s Driving the Cost Surge
Klaba detailed the dramatic rise in component costs. RAM prices, according to Klaba, increased sixfold in the year leading to June 2026. He expects them to hit nine times normal pricing by September and twelve times next year.
The pattern extends across hardware categories:
- NVMe drives: Costs risen sevenfold
- Hard disk drives: Prices up 3.5 times
- CPUs, motherboards, network cards: Increases ranging from 15 to 20 percent
Klaba attributes these surges to a hyperscale buying frenzy
driven by demand for artificial intelligence hardware. He shared these details writing on X.
Billing Changes Coming in October
Beyond rental fees, OVH Cloud is restructuring how some services get billed. Starting October 1st, storage and IP addresses will be decoupled from Gen3 instances and become separate line items.
New pricing includes storage at €0.000146/GB/h and IP addresses at €0.0027/h. The company is also discontinuing its one month, six month, and 24 month savings plans. Only 12 and 36 month options will remain available going forward.
What This Signals for Cloud Pricing
Klaba apologized for the necessary changes while emphasizing OVH Cloud’s commitment to competitive pricing. He warned that the current global context demands strict discipline to continue fulfilling orders. The CEO anticipates elevated prices will persist until 2028, with hopes for a return to normalcy by 2029.
This sentiment resonates across the cloud sector. A managed service provider founder familiar with OVH’s plans expressed no surprise, expecting similar announcements from hyperscale providers like Azure and AWS soon. It highlights the widespread impact of the AI boom on infrastructure costs industry wide.
Our Take
What makes this notable isn’t just the size of the increase, it’s the timeline Klaba is putting on it. Locking in expectations through 2028 tells customers this isn’t a temporary correction they can wait out. For businesses running infrastructure on OVH or watching the broader cloud market, this is an early signal that AI’s hardware appetite is reshaping pricing across the board, not just at the hyperscalers everyone expected to move first.
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