OVH boss predicts major cloud price rises are coming – so get ready
- Cloud costs could increase by 5 to 10% in 2026, warns Octave Klaba, CEO of OVHcloud
- AI demand drives up RAM and NVMe costs for the entire industry
- Stockpiling could delay price increases, but a change in trend could accelerate them.
OVH CEO Octave Klaba has warned that prices of cloud services across the industry could increase by around 5-10% by mid-2026, or even sooner, due to rising hardware costs.
In an X post, Klaba explained that the price of RAM and NVMe drives would increase “a lot” (translated from French).
Klaba added that the rising costs would be attributed to demand-driven pricing, bolstered by the current rise of AI, causing industry-wide ripples for any company in need of such components.
Cloud costs could rise 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 by increasing some prices by 60%.
In the short term, some companies may seek to delay the effects of price increases by stocking affected components now, based on cheaper prices. But that’s exactly what it is: a delay. Ultimately, high demand will cause prices to generally rise.
Klaba says this could extend the availability of lower prices for around six to 12 months.
For OVH in particular, cloud services could experience a price increase of 5 to 10% between April and September 2026. Server costs are expected to increase by around 15 to 25% over the same period.
Although hybrid cloud and cloud reversion (also known as repatriation) remain an option for many, analysts do not expect a major shift away from the cloud as a whole.
“In short, 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 writes.
He signs off the message with a caveat: These forecasts are based on data and trends from November 2025. A change in the coming weeks and months could accelerate price increases, he warns.
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