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- Cloud costs could rise 5-10% in 2026, OVHcloud CEO Octave Klaba warns
- AI demand is pushing RAM and NVMe costs up for the whole industry
- Stockpiling could delay the price hikes, but a change in trends could accelerate them
OVH CEO Octave Klaba has warned that cloud service prices across the industry could rise by around 5-10% by mid-2026, or possibly sooner, as a result of rising hardware costs.
In an X post, Klaba explained the price of RAM and NVMe disks will rise “a lot” (translated from French).
Klaba added the rising costs would be attributed to demand-based pricing, spiked by the ongoing AI surge, causing a knock-on affect across the entire industry for any company requiring such components.
Cloud costs could go up thanks to AI
Recent separate analyst data from TrendForce supports the trend, with DDR4 prices up 158% since September 2025 and DDR5 up 307%. Samsung has already responded to the trend, raising some prices by 60%.
In the short-term, it’s possible that some companies may look to delay the effects of price hikes by stockpiling affected components now, based on cheaper pricing. But it’s exactly that – a delay. Ultimately, high demand will lead to higher prices all-round.
Klaba says this could prolong the availability of lower prices for around six to 12 months.
For OVH in particular, cloud services could see a 5-10% price hike between April and September 2026. Server costs are expected to increase by around 15-25% in the same period.
Though hybrid clouds and reverting back to on-prem (otherwise called repatriation) continue to be an option for many, analysts are not expecting a major shift away from cloud on the whole.
“In short, the consequence of AI on the Cloud: the price of certain Cloud products will increase by approximately +5 to +10% between April and September 2026,” he wrote.
He signs off the post with a caveat – these predictions are based on November 2025 data and trends. A change from this over the coming weeks and months could accelerate price hikes, he warns.
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