OVH expects cloud prices to rise in 2026

"Global demand for AI hardware is putting pressure on the memory market. According to OVH CEO Octave Klaba, this will not only lead to rising component costs, but ultimately also to higher cloud prices. Manufacturers are shifting their capacity to the much more profitable memory types used in GPUs, reducing production for the rest of the market. Klaba writes this in a post. This is putting pressure on the prices of all types of memory and storage, according to Klaba."

"OVHcloud expects identical servers to be between 15 and 35 percent more expensive in December 2026 than they were a year earlier. Klaba explains that the global supply chain is trying to temper price increases by purchasing components 6 months earlier at lower prices. This temporarily allows manufacturers to build more cheaply for months to come, but at the same time, ensures that prices will start to rise as early as December 2025."

"The Register reports that rising costs are raising questions about the possible repatriation of workloads from the cloud, but analysts do not yet see a broad movement in that direction. Previous cases where companies brought their infrastructure back to their own data centers show that this can be financially rewarding, but The Register emphasizes that these projects did not involve AI servers."

Manufacturers are reallocating capacity toward the high-margin memory types used in GPUs, cutting output for other memory and storage segments and tightening supply. Early component purchasing by the global supply chain has temporarily delayed cost increases, but inventory depletion will push prices up from December 2025. Spot prices for DDR5 and NAND have climbed rapidly, reflecting the capacity shift and emerging shortages. OVHcloud projects identical servers will cost 15–35 percent more in December 2026 than a year earlier. Rising component costs have prompted discussion of repatriating cloud workloads, but analysts see little widespread movement given AI hardware complexity and cloud providers' GPU access.

Read at Techzine Global