Hetzner price increases by 20-30 % - other hosting providers soon to follow

[Teiluj]

@robi My experience corroborates yours - I actually contacted SSDNodes earlier this week, wanting to lock in prices now for some servers due to renew later this year in the fall.
They replied that there would be no increase in prices on the renewal until then. Of course no guarantee and things can change between now and then but for now, I am inclined to leave them the benefit of the doubt.

In parallel, the quotes/offers I am getting for physical server hardware have a 3-days lifetime max, due to availability of parts and prices fluctuation. Forget about comparing offers from multiple suppliers in this situation: one needs a short decision-making path to make these effective in these conditions.

[robi]

@Teiluj Yes, and since most of their workloads are virtual, they can shift what runs where, keeping the status quo.

[necrevistonnezr]

@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:

@necrevistonnezr Yes, this could bring in mid term to a reshoring of production plants?

Problem is: It takes a long time to build such production lines and have it actually produce appropriate yield. It's a highly sophisticated process where the US and Europe currently neither have the knowledge nor the production capabilities. Blinded by greed (and I include us customers going for the lowest prices possible), we have outsourced vital industries and there's no easy turning back.

[crazybrad]

@necrevistonnezr I have a friend who worked in the semiconductor industry in the U.S. This has been a several decade process of exiting chip manufacturing, especially "commodity" chips like memory. Memory chip manufacturers experienced boom/bust cycles tied to chasing demand, building factories, only to find them empty after demand stabilized. In my opinion, their assessment today to jack up prices and build nothing is the result of their past experiences.

Unfortunately through intense regulation (many would argue appropriate regulation), other countries have taken a more laissez faire attitude about making semiconductors and have reaped the economic benefit. But many of the chemicals used in semiconductor manufacturing are endocrine disruptors, highly toxic in other ways and generally difficult to protect production workers.

But that (and enormous capital costs) may explain why America and Europe were less interested in producing chips. Again, "short-term, earnings this year above all else, share buyback" mentality that seems to prevail in Western economies justifies a "buy" instead of "make" strategy.

[crazybrad]

Thought I would share an update from U.S. based resellers. The supply environment is not good. Mfr prices on components and services are rising. It is unknown when backlogs will be satisfied. Bottom line: it will be chaotic.

[necrevistonnezr]

@crazybrad said:

Thought I would share an update from U.S. based resellers. The supply environment is not good. Mfr prices on components and services are rising. It is unknown when backlogs will be satisfied. Bottom line: it will be chaotic.

Thanks. I sort of puzzles me that it hasn’t reached the public and politicians eye how much of a threat this is to the economy and overall inflation. But then again, there’s too much sh*t going on elsewhere…
We predict a lot of lay-offs, delayed innovation due to unavailability of hardware, even more strengthening of China‘s aggressive economic expansion (yes, yes, the US is equally as bad but a whatsboutism doesn’t help anyone), and surging prices for all kinds of products (also partly to profit-led inflation or greedflation).
We just learned that farm tractors are surging in price as they are rolling servers these days (measuring and calculating the best route on a field, sometimes even driving autonomously, measuring humidity and quality of the soil, etc.etc.)

[crazybrad]

@necrevistonnezr You raise some excellent points. I think it's also interesting how Apple has just released the Neo, a $599 ($499 for education market) laptop that many here in the U.S. are predicting will really challenge Microsoft's WIN 11. The fact that Apple has a tight control on its supply chain (something you already mentioned) and able to deliver product at scale might be the deciding factor (ignoring the OSX vs. WIN debate). Students can not wait for the computer industry to sort out this mess. They reach various stages and need a computer to continue their education. And if Apple has the product, they win by default.

And your comment about farm tractors is really interesting. Perhaps this is an untapped Cloudron server market. @girish Perhaps we should consider packaging farming-related applications:)

[humpty]

All I'm going to say is F John Deere with big, bold, capital letters. If you're an American, you most likely know why. If not, watch these if interested.

[crazybrad]

@humptydumpty This is a big problem. I was shocked to see that as of 2026, only 4 out of 50 states had passed the "right to repair". But if Chinese AI companies can used "distillation" to create new AI models, then perhaps the same approach could be used to create a digital twin of a tractor and then replace proprietary software with open source software.

[p44]

Just received from Hetzner:

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We would like to inform you that we will be increasing the prices for cloud servers effective 15 June 2026. This applies exclusively to new orders and rescales of existing servers. Cloud servers currently under contract are not affected by the price adjustment. This is intended to give you sufficient time to make any necessary adjustments, particularly with regard to automated server creation via API or integrations.

What is changing?

As part of the standardization of our product portfolio, we are increasing the prices of all Cloud plans. This price change is necessary due to the volatile hardware market.

Which products are affected?

The price adjustment applies to all newly ordered cloud servers and dedicated servers at all locations. However, web hosting products, managed servers, servers from the Server Auction, IPs, storage products, Load Balancers, Volumes, Snapshots, and Object Storage are not affected.

Why the change?

The price adjustment ensures that we will be able to continue to operate our infrastructure in a reliable, efficient, and sustainable manner. In particular, it takes into account the massive increase in procurement costs.

What does this mean for you?

Existing server contracts will, of course, keep their terms and conditions and remain active. The changes apply exclusively to new orders and rescales of existing servers.

We are aware that repeated price adjustments can be a challenge. Our commitment remains; we want to offer you stable and fair prices in the long term.

The transition will take effect on 15 June 2026. We will provide further details on the new rates on our website during the rollout.

We thank you for placing your trust in us, and we are confident that we will continue to offer our services at an competitive price-performance ratio.*

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Note:

Existing server contracts will, of course, keep their terms and conditions and remain active. The changes apply exclusively to new orders and rescales of existing servers.

Have they learned lesson from latest price increase? Perhaps they suffered a significant loss on their contracts following the latest price hike, which also affected their previous contracts.