- Cloud costs could increase by 5% to 10% in 2026, warns OVHcloud CEO Octave Klaba
- AI demand is driving up RAM and NVMe costs for the entire industry
- Storage could delay price increases, but a change in trend could accelerate them
OVH CEO Octave Klaba warned that prices for cloud services across the industry could rise by 5% to 10% by mid-2026, or possibly sooner, as a result of rising hardware costs.
In an X post, Klaba explained that the price of RAM and NVMe disks will increase “a lot” (translated from French).
Klaba added that the increase in costs would be attributed to demand-based pricing, increased by the continued rise of AI, which would have a knock-on effect across the industry for any company requiring such components.
Cloud costs could increase thanks to AI
Recent data from separate TrendForce analysts supports the trend, with DDR4 prices rising 158% since September 2025 and DDR5 rising 307%. Samsung has already responded to the trend, raising 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 it is exactly that: a delay. Ultimately, high demand will lead to higher prices across the board.
Klaba says this could prolong the availability of lower prices for about six to 12 months.
For OVH in particular, prices for cloud services could see an increase of between 5 and 10% between April and September 2026. Server costs are expected to increase by between 15 and 25% in the same period.
Although hybrid clouds and returning to premises (also called repatriation) remain an option for many, analysts do not expect a major shift away from the cloud in general.
“In summary, the consequence of cloud AI: the price of certain cloud products will increase by approximately +5 to +10% between April and September 2026,” he wrote.
He closes the post with a warning: these predictions are based on data and trends from November 2025. A change from this in the coming weeks and months could accelerate price increases, he warns.
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