Comment by bootsmann
2 months ago
A significant part of this is probably just the hockey-stick growth in the price of memory we have seen in the past 6 months. Would be surprised if this wasn't impacting their bottom line for maintenance.
2 months ago
A significant part of this is probably just the hockey-stick growth in the price of memory we have seen in the past 6 months. Would be surprised if this wasn't impacting their bottom line for maintenance.
RAM increased the most, but also SSD and HDD prices increased significantly. And it seems there are also supply problems, so you can't even be sure if you get the components you want at higher prices.
Right, this is what they said in the customer notification email I got today:
“The underlying causes of the increased costs are, among others, the exploding demand for AI-related computing power and for cloud services. In addition, raw material prices and production costs have also generally risen for manufacturers. The costs for RAM and SSDs especially have risen by a large amount. For example, the cost for DRAM memory has increased up to 500% since September 2025. And according to market researchers like TrendForce, this price trend will continue throughout the year.”
There is another factor at play here: EU hosting providers that are not owned lock, stock & barrel are few and far between and Hetzner has a very nice sales representative in the White House.
Can you expound on that? I'm not sure I get what you're implying.
Pretty sure they are implying that the actions of the current president/administration are causing people to re-evaluate US dependencies. I don't really understand the first half
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That Trump makes us very motivated to stop relying on American tech.
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That the USA is no longer seen as a stable partner for the long term and that Trump with his idiotic policies and tariffs is driving sales for the few EU hosting scale-ups that are not somehow owned by America.
Yeah, also Hetzner is smart enough to realize that a lot of people are moving to them who are "Buy EU"-driven and are less price sensitive (certainly the most valuable ones are). Hopefully they can take these higher prices and further invest into the platform.
The strongest reaction of EU would be to subsidize RIPE small LIR fees to 0€ and embrace decentralization.
What would that achieve? Here, have 1.5% discount on your subnet purchase
Maybe that could help a little, but on the other hand, there are just no more IPv4 addresses at RIPE. And European businesses seem to be very hesitant at adopting IPv6.
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Here's to hoping the IOU purchase orders for RAM and SSDs get cancelled... Though I think folks are hedging that this will happen and limiting new suppliers.
I kinda miss the days of the crazy housing bubble back in late 2000s, at least that bubble didn't affect my daily life.
Count yourself lucky! I took a new job in another city just as the bubble hit and had a 3 hour round-trip commute for a year and a half due to that mess. We literally couldn't afford to sell our house because we were underwater on the mortgage. (Would have had to bring more money to the table than we had in savings.) And because of that we also missed a lot of great deals in the destination city as well and had to settle for a house in the suburbs that we weren't thrilled with but fit our budget.
I shouldn't complain too much, lots of people had it far worse. Millions lost their homes (and their downpayments) altogether and took over a decade to recover, if they ever did.
Is there also an increase in non-US hosting demand?