"The price of some cloud services will have to rise by five to ten percent by mid-2026, maybe sooner, according to Octave Klaba, CEO of French cloud OVH. In a weekend post to his X account, Klaba opened with the observation that the price of RAM and NVMe drives will increase significantly in around six months. The CEO attributed that increase to demand for AI hardware, which he said has seen memory-makers shift production to the HBM memory used in GPUs."
"Klaba's predictions are not an outlier: Memory-centric analyst firm TrendForce last week noted the spot price for 1Gx8 DDR4 memory has risen 158 percent since September 2025, while DDR5 2Gx8 is up 307 percent. Another analyst firm, Counterpoint Research, last week predicted prices will double. Samsung has apparently already lifted prices 60 percent."
"The OVH CEO has some good news, in the form of his belief that hardware-makers stocked up on components before prices jumped and can therefore keep the cost of their products steady until June 2026. However, that sort of supply chain move also exerts upward pressure on prices. Klaba therefore predicts the cost of servers his cloud buys will rise 15 to 25 percent between December 2025 and 2026, and that increased prices for some cloud services will follow - meaning five to ten percent increases between April and September 2026. "These are estimates based on the information we have as of November 2025," he wrote. "This could accelerate.""
Prices for RAM and NVMe drives are expected to rise significantly within about six months as memory-makers shift production to HBM for GPUs, reducing output of other memory types. Spot prices have already surged, with DDR4 and DDR5 variants rising sharply and analysts predicting further large increases; Samsung has raised prices substantially. Hardware manufacturers stocked up on components before the spike, which may temporarily keep product costs steady until mid-2026 but also increases supply-chain pressure. Server costs are projected to rise 15–25 percent from December 2025 through 2026, and some cloud services may increase 5–10 percent between April and September 2026, with potential for acceleration. Rapid cloud repatriation projects demonstrate on-prem alternatives can yield swift returns if cloud costs climb further.
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