OVH Cloud, a European cloud infrastructure provider, announced substantial pricing increases to offset soaring hardware costs driven by aggressive purchasing from artificial intelligence companies. The company's leadership reported that memory expenses have climbed sixfold over the past year and are projected to increase further to twelvefold by next year, while storage and processor costs have risen between 3.5 and 20 percent.

The increases, taking effect from September, will range from 40 to 87 percent depending on server specifications, with gaming infrastructure experiencing the most severe hikes. The company is simultaneously restructuring its billing model by separating storage and IP address charges as independent line items and discontinuing shorter-term pricing lock-in contracts. Management indicated it anticipates this unfavourable cost environment will persist through 2028, with expectations for market normalisation in 2029.