Hetzner price increases by 20-30 % - other hosting providers soon to follow
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Our current predictions are:
- Consumers and tax payers (because "consumers" include governmental institutions) will - once again - be faced with unprecedented price surges (hence "imported inflation") and hardware shortages; it will be worse than during the pandemic.
- It will stay this way at least until the end of 2027, possibly until 2030 (see interview with the Micron CEO)
- Consumer hardware will - if available at all - see downgrades in specs instead of the usual upgrades. A positive aspect: Maybe we'll see even more spec-efficient hardware (like Apple M chips).
- It is possible that one or more of the consumer hardware branches of large producers (think Acer, Asus, Dell, Lenovo..) will not survive 2026/2027
- It is likely that several IT-hardware resellers (the ones that e.g. supply schools or companies with 10.000+ devices) will not survive, either.
- Even longstanding agreements with fixed pricing are not worth their paper. All of our suppliers are openly in breach of contract - but since we all don't have an alternative, you can't do much without suing. We still refrain from that since it's costly and not good for business, but it might end up in a legal war.
You know a company who hasn't increased prices on this occasion? Apple. But they are famous for their control over its supply chain.
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Netcup is next (https://forum.netcup.de/informationen/netcup-community/netcup-updates/p260826-rampocalypse-an-honest-update-on-the-hardware-situation/#post260826#09) :
First and foremost, we are cancelling the announced sale - it would send the wrong signal. This situation affects the entire European hosting industry - major providers have already announced price increases for both new and existing customers. This doesn't just impact new systems, but also hardware renewals and replacements. It reverberates all the way through the datacenter.
We know that some of you are frustrated and disappointed - we understand, because we're in the same boat.
This is where things stand right now - fully transparent and unvarnished.
We will do everything we can to keep the impact on you as small as possible - but realistically, there will be some impact.
-
Our current predictions are:
- Consumers and tax payers (because "consumers" include governmental institutions) will - once again - be faced with unprecedented price surges (hence "imported inflation") and hardware shortages; it will be worse than during the pandemic.
- It will stay this way at least until the end of 2027, possibly until 2030 (see interview with the Micron CEO)
- Consumer hardware will - if available at all - see downgrades in specs instead of the usual upgrades. A positive aspect: Maybe we'll see even more spec-efficient hardware (like Apple M chips).
- It is possible that one or more of the consumer hardware branches of large producers (think Acer, Asus, Dell, Lenovo..) will not survive 2026/2027
- It is likely that several IT-hardware resellers (the ones that e.g. supply schools or companies with 10.000+ devices) will not survive, either.
- Even longstanding agreements with fixed pricing are not worth their paper. All of our suppliers are openly in breach of contract - but since we all don't have an alternative, you can't do much without suing. We still refrain from that since it's costly and not good for business, but it might end up in a legal war.
You know a company who hasn't increased prices on this occasion? Apple. But they are famous for their control over its supply chain.
@necrevistonnezr if what you're saying is REMOTELY accurate, then it would be wise to stock up on older but high-end tier gen parts to survive the ai craze. ebay, here I come!
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That's whats already happening...
In Tokyo's electronics hub of Akihabara, stores are restricting purchases of memory products to curb hoarding. A sign outside PC shop Ark says that since November 1 customers have been limited to buying a total of eight products across hard-disk drives, solid-state drives and system memory. Ark declined to comment.
https://www.reuters.com/world/china/ai-frenzy-is-driving-new-global-supply-chain-crisis-2025-12-03/
In addition, there are reports that OpenAI employees have been urged to buy up all the RAM that is still available in local electronics stores. Such measures are probably not only intended to meet one's own needs, but also to block the competition.
https://www.linux-magazin.de/news/openai-will-von-samsung-40-prozent-der-dram-weltproduktion-kaufen/
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Netcup is next (https://forum.netcup.de/informationen/netcup-community/netcup-updates/p260826-rampocalypse-an-honest-update-on-the-hardware-situation/#post260826#09) :
First and foremost, we are cancelling the announced sale - it would send the wrong signal. This situation affects the entire European hosting industry - major providers have already announced price increases for both new and existing customers. This doesn't just impact new systems, but also hardware renewals and replacements. It reverberates all the way through the datacenter.
We know that some of you are frustrated and disappointed - we understand, because we're in the same boat.
This is where things stand right now - fully transparent and unvarnished.
We will do everything we can to keep the impact on you as small as possible - but realistically, there will be some impact.
I think European ISP are looking each other... first OVH, then Hetzner, then Netcup... then another one...
Instead of reduce or keep low gross margin and promote reshoring, they are raising prices...
I believe the price increases they are making are because their demand is also increasing in view of reshoring in Europe...
Yes... global market, increasing RAM, scarce disks... all BS... IMHO... any excuse is good.
Edit: In terms of communication, I liked Netcup's approach best: posting on a forum I think it was a better way to communicate a “bad” news to customers...
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I got a notice about price increasing from 65Eur to 66.95Eur so not a big % increase ... and I don't even have that server anymore ! Their comms are bit screwy. Waiting nervously for the price increase for the current server ... and Storage Box.
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@timconsidine worst increase I had is on CCX23 from 23.99 to 31.49... equal to 7,50 euros... +31%... one third of price... A completely abnormal increase, in my opinion.
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Here's the impact it's having on me:
Product previous price New price as of 1 April 2026
CPX11 (FSN1) € 3.85 € 5.49
CX22 (HEL1) € 3.29 € 4.49
AX41-NVMe (HEL1) € 35.60 € 36.70
Snapshot (per 1 GB/Month) € 0.0110 € 0.0143And also (on another account):
Product previous price New price as of 1 April 2026
CPX41 (HEL1) € 24.70 € 32.49all prices excl. vat
Seems the Cloud servers are going up a lot more than the dedicated servers. I note that the CPX41 cloud VPS server (8 vCPU, 16GB RAM, 240 GB) is now only €4.21 cheaper than my significantly more powerful AX41 dedicated server (12 CPU, 64GB RAM, 2 x 512 GB drives, but in RAID so only actually 512 GB of storage available).
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Here's the impact it's having on me:
Product previous price New price as of 1 April 2026
CPX11 (FSN1) € 3.85 € 5.49
CX22 (HEL1) € 3.29 € 4.49
AX41-NVMe (HEL1) € 35.60 € 36.70
Snapshot (per 1 GB/Month) € 0.0110 € 0.0143And also (on another account):
Product previous price New price as of 1 April 2026
CPX41 (HEL1) € 24.70 € 32.49all prices excl. vat
Seems the Cloud servers are going up a lot more than the dedicated servers. I note that the CPX41 cloud VPS server (8 vCPU, 16GB RAM, 240 GB) is now only €4.21 cheaper than my significantly more powerful AX41 dedicated server (12 CPU, 64GB RAM, 2 x 512 GB drives, but in RAID so only actually 512 GB of storage available).
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
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As I have pointed out, I believe that this increase is purely arbitrary and is simply an opportunity to generate cash flow, maybe to expand infrastructure in other countries.
Does anyone know of any other increases by other ISPs in these days?
Yesterday was for the “gas”, today is for the RAM, tomorrow will be for other reasons...
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As I have pointed out, I believe that this increase is purely arbitrary and is simply an opportunity to generate cash flow, maybe to expand infrastructure in other countries.
Does anyone know of any other increases by other ISPs in these days?
Yesterday was for the “gas”, today is for the RAM, tomorrow will be for other reasons...
@p44 they're playing with a double-edged sword. I see this as a win for smaller hosts and SaaS providers. CR wins again.
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@humptydumpty Let’s see in next weeks what will happens...
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@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
We see server price increases for servers and storage in the region of 400-500 %, e.g. 50k instead of 10k. Think of having to replace 20 servers, you have extra costs of 800k, of you get them at all. Servers run for 3-5 years, max. That is a lot of extra costs.
This is neither arbitrary nor BS. This is currently a major crisis which will spill over in many areas and will impact inflation. Example: We have a large customer who cannot open his wind power park (gigawatts) because it needs powerful servers to run - which are not available at all. -
@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
We see server price increases for servers and storage in the region of 400-500 %, e.g. 50k instead of 10k. Think of having to replace 20 servers, you have extra costs of 800k, of you get them at all. Servers run for 3-5 years, max. That is a lot of extra costs.
This is neither arbitrary nor BS. This is currently a major crisis which will spill over in many areas and will impact inflation. Example: We have a large customer who cannot open his wind power park (gigawatts) because it needs powerful servers to run - which are not available at all.@necrevistonnezr From my point of view as a Isp customer, changes should not be applied to long-standing users, and part of the costs should also be absorbed on to ISPs, who must be willing to reduce their gross margins.
When you say “we see,” are you speaking as an ISP? Which region are you referring to?
Edit: In 2022, several European providers raised their prices, justifying the increase due to higher gas prices. Now that gas prices have been normalized, have they lowered their prices?
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@p44 I agree with your logic. The equipment in house is bought and paid for and existing customers shouldn't have an increase, except...
@necrevistonnezr has explained that the cost of servers from his vantage point has increased 500%. That would mean that NEW customers would have to pay almost 5 times the amount for a new VPS. They just wouldn't, causing Hetzner's business to be capped at their current revenue base.I suspect that the 30+% increase for everyone is a way to spread the huge cost increase for new capacity over a wider base. I don't like it, it's unfair to those of us who either bought ahead of growing needs or those who needs are unchanged.
It should be interesting to see if any other VPS providers (e.g. Netcup, SSDNodes) decide to keep pricing the same for existing customers and keep their promises even under unforeseen market conditions. It would definitely earn loyalty from their customer base.
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@p44 I agree with your logic. The equipment in house is bought and paid for and existing customers shouldn't have an increase, except...
@necrevistonnezr has explained that the cost of servers from his vantage point has increased 500%. That would mean that NEW customers would have to pay almost 5 times the amount for a new VPS. They just wouldn't, causing Hetzner's business to be capped at their current revenue base.I suspect that the 30+% increase for everyone is a way to spread the huge cost increase for new capacity over a wider base. I don't like it, it's unfair to those of us who either bought ahead of growing needs or those who needs are unchanged.
It should be interesting to see if any other VPS providers (e.g. Netcup, SSDNodes) decide to keep pricing the same for existing customers and keep their promises even under unforeseen market conditions. It would definitely earn loyalty from their customer base.
@crazybrad Thanks for sharing your opinion.
There is also another aspect: could it be that Isp such as Hetzner has been offering below-cost prices in recent years to attract customers and can no longer afford to operate below cost in the market? If that were the case, the situation would be different at this point.
My main hypothesis is that with this increase, Hetzner will open or expand data centers paid for by us “loyal” users.
Over the years their service has remained the same: they haven't given anything extra - such as better customer service - to justify prices increase.
Raising prices for existing customers is a serious risk of losing them, and I agree with you when you say it's unfair.
Tomorrow morning, what will companies who base their infrastructure on Hetzner have to say to their customers?
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@humptydumpty said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
@jdaviescoates now it REALLY doesn't make any sense. A dedicated server that has RESERVED memory for it is has barely any increase while cloud services with SHARED resources is charged 30% more? WTF.
We see server price increases for servers and storage in the region of 400-500 %, e.g. 50k instead of 10k. Think of having to replace 20 servers, you have extra costs of 800k, of you get them at all. Servers run for 3-5 years, max. That is a lot of extra costs.
This is neither arbitrary nor BS. This is currently a major crisis which will spill over in many areas and will impact inflation. Example: We have a large customer who cannot open his wind power park (gigawatts) because it needs powerful servers to run - which are not available at all.@necrevistonnezr iirc last year (or two) I saw dedicated servers on sale that had first gen intel i5/i7. That's way beyond the 3-5 yr life expectancy. Like you said, this "wave" is unavoidable and everyone across all sectors need to compromise to stay up and running. Providers need to create MORE plans with some running on older tech. Let the need of each dictate who pays for the acquisition for the latest tech. I'm not saying the price increase isn't justified, but their strategy is. Currently, Cloud servers are seeing the biggest increase since those resources are shared. The math doesn't add up. Providers are doing it because they want to retain their dedicated customers and aren't afraid of losing VPS ones. As always, your average joe gets the shaft.
@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
Tomorrow morning, what will companies who base their infrastructure on Hetzner have to say to their customers?
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@necrevistonnezr iirc last year (or two) I saw dedicated servers on sale that had first gen intel i5/i7. That's way beyond the 3-5 yr life expectancy. Like you said, this "wave" is unavoidable and everyone across all sectors need to compromise to stay up and running. Providers need to create MORE plans with some running on older tech. Let the need of each dictate who pays for the acquisition for the latest tech. I'm not saying the price increase isn't justified, but their strategy is. Currently, Cloud servers are seeing the biggest increase since those resources are shared. The math doesn't add up. Providers are doing it because they want to retain their dedicated customers and aren't afraid of losing VPS ones. As always, your average joe gets the shaft.
@p44 said in Hetzner price increases by 20-30 % - other hosting providers soon to follow:
Tomorrow morning, what will companies who base their infrastructure on Hetzner have to say to their customers?
