Major cloud hosting provider Hetzner has sharply raised prices across its virtual server portfolio for the second time this year. The cheapest VPS (virtual private server) plan in the US, with 2 shared virtual cores and 2GB of RAM, now costs $20.49 per month, up 193%.
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Hetzner has implemented sharp price increases across its VPS portfolio, citing limited availability of RAM, SSDs, and GPUs.
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Budget VPS plans were hit hardest, with some prices surging by more than 200%.
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The price adjustments only affect new orders – existing contracts remain at their original terms.
The strained hardware market has pushed Hetzner to significantly raise prices across its data centers in Germany, Finland, Singapore, and the US. The updated prices are up to 3 times higher than previously.
Hetzner announced the upcoming price changes back on May 27th, 2026. However, the company couldn’t publish the price list at the time due to market uncertainties. Hetzner cited “severely limited availability of components” and considerably fluctuating prices for RAM, SSDs, and GPUs.
In the US, VPS prices have surged by 107-204%, with budget servers using shared CPU cores the hardest hit.
The updated pricing shocked the market.
“It really is an absolute massive jump. Have no clue what’s going on in the back to warrant a 3x increase... 25-50%, sure.. but 3x is wild,” one of the users on Hacker News posted.
“My Hetzner VPSes are now appreciating assets,” another customer posted on X.
For example, CPX 51, a server with shared 16 AMD cores, 32GB of RAM, and 640GB of storage, now costs $279.49 per month, compared to $92.49 previously.
Servers with dedicated virtual cores now start at $50.99/month, up from $19.99/month previously, for 2 cores, 8GB of RAM, and 80GB of storage. The price of the most expensive US server, CCX63, jumped from $460.49/month to 1,014.49/month. It has 48 dedicated cores and 192GB of RAM.
Prices for the same plans are comparable in Germany, Finland, and Singapore.
Hetzner also standardized its dedicated servers, eliminating custom RAM and storage configurations. The adjusted prices will allow the company to continue operating its infrastructure “in a reliable, efficient, and sustainable manner.”
The price changes only affect new orders.
“Currently rented servers are not affected by the price adjustment,” Hetzner said in the announcement.
“Existing server contracts will keep their terms and conditions and remain active.”
Currently, other Hetzner products, such as web hosting, managed servers, servers from the Server Auction, IPs, storage products, Load Balancers, Volumes, Snapshots, and Object Storage, are not affected by the change.
Hetzner doesn’t expect its market position to change
Despite price changes, Hetzner doesn’t appear to be worried about losing market share – price increases are unavoidable. Cybernews already reported on unprecedented RAM and storage prices, driven by the AI boom, leaving purchasers with limited options.
Users on Hacker News have been sharing a translated statement from Martin Hetzner, the founder and CEO of Hetzner.
“Hetzner Online’s pricing strategy has remained unchanged for many years. Our prices are based on the respective purchasing conditions as well as internal operating costs,” the comment reads.
“The key pricing factors – for example, depreciation periods and profit margins – have remained constant over many years and will continue to do so.”
Hetzner explained that the company has subsidized cost increases over the past nine months, significantly delaying price adjustments. Numerous data center operators are also raising prices.
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“Hetzner Online has always stood for an outstanding price-performance ratio, and that will not change in the future,” the comment reads.
“I am convinced that the current hardware crisis will neither sustainably improve nor worsen our competitive position. Rather, I expect that our relative position in the market will hardly change even within the new pricing structure.”
Previously, OVHcloud also announced steep price increases, citing sustained inflation in memory components, disrupting economic fundamentals of computer hardware on premises and for the cloud.
“Paradoxically, the rise in prices is not enough to secure the availability of components. Currently, to guarantee the delivery of their desired volume of RAM or disks, cloud providers need to order up to 12 months in advance, without being told the final price at the time of purchase,” OVHcloud said in the announcement.
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