OVH Cloud Slashing Affordability With Massive Price Hikes

France-based cloud operator OVH is preparing to significantly increase server rental costs, as first reported by The Register. Gaming servers will see the steepest jump of 87%.

OVH CEO Octave Klaba attributed the price hikes to a "hyperscale buying frenzy" fueled by the AI boom. Klaba stated that the cost OVH pays for memory increased sixfold in the year ending June 2026 and is projected to reach 12x next year. Other hardware costs have also surged: NVMe drives have risen 7x, hard disks 3.5x, and CPUs, motherboards, and network cards have increased by 15 to 20 percent.

Starting in September, costs for other recent servers will rise between 40 and 59 percent. While customers renewing contracts for 2024-era equipment will see increases three to six times lower than new orders, the overall pricing structure is shifting. Effective October 1, OVH will decouple storage and IP addresses from Gen3 instances, billing them separately at €0.000146/GB/h for storage and €0.0027/h for IP. Furthermore, the company is scrapping its saving plans for one-month, six-month, and 24-month durations.

Klaba warned that these costs are necessary to ensure the company can fulfill new orders and expansions, noting that prices for RAM and drives will likely continue to rise through 2028, with a potential return to normal in 2029.