Hetzner Price Increase

WhiteRoseG · June 21

@amarc said:

@WhiteRoseG said: I completely moved to IONOS 2 year contract saved 75% of my cost.

How do you like it ? Which location, package ? Any YABS ?

I posted allot of YABS, search on my name I am happy no downtime at all and unbeatable in price

totally_not_banned · June 21

@WhiteRoseG said:

@amarc said:

@WhiteRoseG said: I completely moved to IONOS 2 year contract saved 75% of my cost.

How do you like it ? Which location, package ? Any YABS ?

I posted allot of YABS, search on my name I am happy no downtime at all and unbeatable in price

Do you know if there's an option to pay manually (as in no Paypal subscription or allowing SEPA deduction)? I was kinda tempted to give them a try besides them being... well IONOS but allowing them to charge me at their sole discretion is something i'm not really comfortable with. I don't want to run after my money if they decide to pull some IONOS on me...

WhiteRoseG · June 21

@totally_not_banned said:

@WhiteRoseG said:

@amarc said:

@WhiteRoseG said: I completely moved to IONOS 2 year contract saved 75% of my cost.

How do you like it ? Which location, package ? Any YABS ?

I posted allot of YABS, search on my name I am happy no downtime at all and unbeatable in price

Do you know if there's an option to pay manually (as in no Paypal subscription or allowing SEPA deduction)? I was kinda tempted to give them a try besides them being... well IONOS but allowing them to charge me at their sole discretion is something i'm not really comfortable with. I don't want to run after my money if they decide to pull some IONOS on me...

I use PayPal, if something happen I open a dispute, but for a year now everything is solid. It's a big company so I think they don't want to rob you.

TimboJones · June 21

@rpqu said:

@Samoht999 said:

@rpqu said:

@fiberstate said:

@DS26 said:

@gremeyer said:

@DS26 said:
Can anyone running a DC and selling dedicated servers comment on whether these price rises are to be expected across the board? I've got some servers I don't need but I'm nervous to let them go given they're on relatively cheap pricing.

Eg I would consider this my worst value auction server and I don't really need it currently but I'm worried I won't be able to get something with same NVME for similar price:
Xeon Gold 5412u
128gb RAM
3x 3.84TB NVME
190 euros/mo

It only applies to new orders for now.

My question is more whether we can expect similar price rises across the industry for new services, so I know whether to hold older services I have but could let go. Hetzner's statement seems to suggest that they expect the industry to align to their prices. Personally I don't see RAM and NVME prices coming down in the short to medium term, hopefully it's also not going up much more either, but are the kind of prices we are seeing from hertzner now really what is needed to cover current hardware prices?

For everyone saying AI demand is a bubble, ask yourself how much AI has already integrated into the internet ecosystem. Now add medical, vehicle, and robotics control to the equation, and in 5–10 years, data center and compute infrastructure will continue to be among the most in-demand sectors the world has ever seen. Compute is a commodity, just like oil or anything else.

Will new manufacturing capacity come online and alleviate some of this crunch? Sure. But demand will continue, and in many cases, it will outpace manufacturing capacity for the foreseeable future. Compute has always greatly benefited from scale. AI inference will absolutely drive cloud demand to dizzying new heights.

Utilities are refusing Data Center interconnects due to grid constraints, water rights are being heavily fought over, industrial electricians are in high demand and most new data center space is focused solely on hyper scale.

As you said, the demand is real. AI is also a commodity — people have moved from capability benchmarks to token pricing. So what shapes token pricing? The cost of building datacenters, electricity, and hardware, divided by how many tokens the hardware stack can produce.

NVIDIA's roadmap shows token generation capability increasing by an order of magnitude within two quarters. That doesn't include LPU/XPU solutions (Groq, Cerebras) that increase production further.

If the denominator increases, the only way the price holds is if the numerator rises proportionally — meaning GPU prices have to compensate. With current BoM, even a 2.5× materials cost increase doesn't offset a 10× jump in token throughput. So token prices will go lower.

The bubble crowd implies AI labs massively subsidize their product. They do — but subsidy now doesn't mean they can't be profitable later. Midjourney is profitable on Y2025. When token costs drop, the gap between cost and price closes, and labs move into margin.

But here's what the bubble crowd misframes: the risk isn't in the labs. It's in the infrastructure layer. When token prices drop, previous-generation hardware becomes economically indefensible — not gradually, abruptly. The right amortization window for a Blackwell cluster isn't 36 months, it's closer to 12. The Anthropic-xAI Colossus contract already shows why: H100/H200 clusters at implied ~$3.65/Mtoken cost, against Vera Rubin's projected floor of $0.02–0.05/Mtoken. That's 73–180× more expensive per token. It's not depreciation — it's obsolescence within the financing window.

If an AI lab walks away — or simply refuses to renew on older hardware — the operator absorbs the loss. The operator effectively subsidized the lab's operation, funded by whatever profits they had or debt they could raise. When the cluster value drops, the debt face value doesn't follow. The credit-default-swap does — in the other direction.

Did you use AI to write this ?

For grammatical and data augmentation purpose.. 90-95% of words could be traced to earlier version I wrote. Around 2-3% is a phrasing correction while the rest is the augmentation.
If this site logs changes to drafts, the site administrator and moderator could attest my statement.
Any question?

What did you tell it to do? I just say "polish this to be more readable".

rpqu · June 22

@TimboJones said:

@rpqu said:

@Samoht999 said:

@rpqu said:

@fiberstate said:

@DS26 said:

@gremeyer said:

@DS26 said:
Can anyone running a DC and selling dedicated servers comment on whether these price rises are to be expected across the board? I've got some servers I don't need but I'm nervous to let them go given they're on relatively cheap pricing.

Eg I would consider this my worst value auction server and I don't really need it currently but I'm worried I won't be able to get something with same NVME for similar price:
Xeon Gold 5412u
128gb RAM
3x 3.84TB NVME
190 euros/mo

It only applies to new orders for now.

My question is more whether we can expect similar price rises across the industry for new services, so I know whether to hold older services I have but could let go. Hetzner's statement seems to suggest that they expect the industry to align to their prices. Personally I don't see RAM and NVME prices coming down in the short to medium term, hopefully it's also not going up much more either, but are the kind of prices we are seeing from hertzner now really what is needed to cover current hardware prices?

For everyone saying AI demand is a bubble, ask yourself how much AI has already integrated into the internet ecosystem. Now add medical, vehicle, and robotics control to the equation, and in 5–10 years, data center and compute infrastructure will continue to be among the most in-demand sectors the world has ever seen. Compute is a commodity, just like oil or anything else.

Will new manufacturing capacity come online and alleviate some of this crunch? Sure. But demand will continue, and in many cases, it will outpace manufacturing capacity for the foreseeable future. Compute has always greatly benefited from scale. AI inference will absolutely drive cloud demand to dizzying new heights.

Utilities are refusing Data Center interconnects due to grid constraints, water rights are being heavily fought over, industrial electricians are in high demand and most new data center space is focused solely on hyper scale.

As you said, the demand is real. AI is also a commodity — people have moved from capability benchmarks to token pricing. So what shapes token pricing? The cost of building datacenters, electricity, and hardware, divided by how many tokens the hardware stack can produce.

NVIDIA's roadmap shows token generation capability increasing by an order of magnitude within two quarters. That doesn't include LPU/XPU solutions (Groq, Cerebras) that increase production further.

If the denominator increases, the only way the price holds is if the numerator rises proportionally — meaning GPU prices have to compensate. With current BoM, even a 2.5× materials cost increase doesn't offset a 10× jump in token throughput. So token prices will go lower.

The bubble crowd implies AI labs massively subsidize their product. They do — but subsidy now doesn't mean they can't be profitable later. Midjourney is profitable on Y2025. When token costs drop, the gap between cost and price closes, and labs move into margin.

But here's what the bubble crowd misframes: the risk isn't in the labs. It's in the infrastructure layer. When token prices drop, previous-generation hardware becomes economically indefensible — not gradually, abruptly. The right amortization window for a Blackwell cluster isn't 36 months, it's closer to 12. The Anthropic-xAI Colossus contract already shows why: H100/H200 clusters at implied ~$3.65/Mtoken cost, against Vera Rubin's projected floor of $0.02–0.05/Mtoken. That's 73–180× more expensive per token. It's not depreciation — it's obsolescence within the financing window.

If an AI lab walks away — or simply refuses to renew on older hardware — the operator absorbs the loss. The operator effectively subsidized the lab's operation, funded by whatever profits they had or debt they could raise. When the cluster value drops, the debt face value doesn't follow. The credit-default-swap does — in the other direction.

Did you use AI to write this ?

For grammatical and data augmentation purpose.. 90-95% of words could be traced to earlier version I wrote. Around 2-3% is a phrasing correction while the rest is the augmentation.
If this site logs changes to drafts, the site administrator and moderator could attest my statement.
Any question?

What did you tell it to do? I just say "polish this to be more readable".

Something along, "Please fix the grammatical errors, add numbers from the memory while preserving the writing style of the following text"

aphex · June 22

Do I need to do something special to figure out how to order VPS in Leaseweb US locations?

totally_not_banned · June 22

@WhiteRoseG said:

@totally_not_banned said:

@WhiteRoseG said:

@amarc said:

@WhiteRoseG said: I completely moved to IONOS 2 year contract saved 75% of my cost.

How do you like it ? Which location, package ? Any YABS ?

I posted allot of YABS, search on my name I am happy no downtime at all and unbeatable in price

Do you know if there's an option to pay manually (as in no Paypal subscription or allowing SEPA deduction)? I was kinda tempted to give them a try besides them being... well IONOS but allowing them to charge me at their sole discretion is something i'm not really comfortable with. I don't want to run after my money if they decide to pull some IONOS on me...

I use PayPal, if something happen I open a dispute, but for a year now everything is solid. It's a big company so I think they don't want to rob you.

Yeah, i get what you mean. It's IONOS aka 1and1 aka 1und1 though. They sure know what they are doing but they are also known for their you-didn't-uncheck-that-box-or-read-every-bit-of-fineprint upsell tactics and random weird antics while not being necessarily easy to deal with when there is a problem. They've always been great value when things worked (not only for hosting) but are also very much buyer beware.

I wouldn't feel comfortable unless i'd watch them all the time and subconsciously wait for the day when they turn on me (which might not come but even if they are likely less problematic than they used to be it's certainly a possibility). To be fair it's not like paying manually would entirely safeguard against that. It only eases the risk of having to run after them (like they make an erroneous charge and while agreeing that it was wrong only give you account credit...). If they feel you owe them money it's pretty safe to assume they'll send it to collections no matter what anyways.

rdes · June 22

delete pls

stablecloud · June 22

I would never use IONOS, for anything, ever.

That being said I do have a Hetzner auction dedi I use for personal stuff (emby + a bunch of containers). Hoping I don't see an increase on that.

equalz · June 22

deleted all my junk from hetzner, moved on, sad

Neoon · June 23

Discover · June 23

Unfortunate but not entirely surprising. With hardware costs rising and the AI boom eating up datacenter capacity, they probably have to pivot to the B2B market to stay profitable.

plumberg · June 23

@Neoon said:

Time to cash out my lot of DDR2 sticks

rpqu · June 23

@Neoon said:

https://www.trendforce.com/news/2026/06/23/news-memory-giants-split-on-hbm4-strategy-samsung-hbm4-sales-reportedly-tops-1b-sk-hynix-slows-ramp/

As the report explains, with a strong foothold already established in the HBM market, SK hynix faces limited pressure to accelerate investment in HBM4 and HBM4E production. Instead of pushing further into next-generation HBM expansion, the company is increasingly prioritizing the commodity DRAM segment, where DRAM operating margins are projected by analysts to approach a theoretical peak of 90% within the year.

mrapino · June 24

Anyone liking DataWagon and/or Clouvider for clients/professional applications?

fluffernutter · June 24

@mrapino said:
Anyone liking DataWagon and/or Clouvider for clients/professional applications?

I'd trust clouvider more

nook86 · June 24

i aaaaam too big to falllllllllllllll

mrapino · June 25

@fluffernutter said:

@mrapino said:
Anyone liking DataWagon and/or Clouvider for clients/professional applications?

I'd trust clouvider more

I appreciate the reply. I was trying to find a US company, but honestly, as long as the datacenters are located close to my clients it's all the same.

coolice · June 28

@totally_not_banned said:

You haven't really been around during .com, have you? Sure starting out operating at a loss sometimes leads to very profitable projects but it's far from a guarantee and in this case it's not even that much about the companies themselves being able to operate economically but if the product they sell manages to provide an economical advantage to their users. The AI support agent is regularly only useful as long as it costs less than the human it replaces. Sure, there's a whole lot of different angles but in a large part the big question comes down to: Will the final product, which highly likely will be x-times as expensive as it is now, still be attractive to potential buyers?

@rpqu said:
So what shapes token pricing?

Currently probably mostly how much loss the seller is willing to take for subsidizing it.

+1

If AI displaces a lot of humans from their jobs cost of hire human will go down...
Local model have fixed prices... Local models are not as smart as frontline models trained on public data but what about when local model have a RAG of 50K, 100K, 500K solved customer support cases to which frontline models never have an access...

In my opinion cheaply hired human enhanced with (Local AI + RAG) will beat frontline model

lui · July 1

@HostDZire said:
Well looks like right time to post another thread with leaseweb vps offers

When? We're waiting!

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