OVHcloud raises server prices as memory and disk costs climb
The cloud and hosting provider has repriced its newest servers to cover component costs, and its chief executive expects further increases through November and December
- Public Cloud revenue: €255.1m, up 18.9% like-for-like
- Private Cloud revenue: €690.4m, up 4.5% like-for-like
- Adjusted EBITDA: €480.5m, a 42% margin
- Power capacity: 250 MW connected, 140 MW in operation
- FY2027 targets: like-for-like growth above 10% and an adjusted EBITDA margin above 42.5%
Customers on recent OVHcloud servers, and anyone ordering new ones, pay more per machine. Because the release limits the increase to recent and newly ordered servers, a refresh or expansion now costs more than keeping older machines running. Klaba told analysts that rival providers had also started raising prices, which he said leaves customers fewer cheaper places to move to.
“In response to rising RAM and storage prices, we made measured adjustments to our pricing.”Octave Klaba, chairman and chief executive, OVHcloud
OVHcloud reported revenue of €1.15bn (£996m) for the year to 31 August 2026 on 20 October, up 7.2% like-for-like, and said it had passed higher memory and storage costs on to customers through targeted price increases.
The results release describes the method as a pass-through of component costs shared across its customer base. In a letter to shareholders, employees and customers published the same day, chairman and chief executive Octave Klaba said the extra cash from pricier latest-generation servers offsets the cost of RAM and disks. The company also bought about €49.5m of memory and disk components early, which it said are intended for use in 2027.
On the results call, according to the transcript published by Investing.com, Klaba said the main increase took effect at the beginning of October and that further rises would follow in November and December. He said part of the repricing is built into the company's guidance and that higher prices can bring churn. Interim chief financial officer Julien Rabette said the price adjustments had no effect on churn in the year just ended.
Growth came mostly from Public Cloud, while Private Cloud, the largest business, grew more slowly. As HostingJournalist reported, OVHcloud plans to set out its AI strategy in more detail on 19 November.
Sources
- OVHcloud, “All 2026 targets achieved, excellence in execution, focus on value creation”, press release, 20 October 2026. https://corporate.ovhcloud.com/en/newsroom/news/financial-results-fy26/
- OVHcloud, “All 2026 targets achieved, excellence in execution, focus on value creation”, press release via GlobeNewswire (The Manila Times), 20 October 2026. https://www.manilatimes.net/2026/10/20/tmt-newswire/globenewswire/all-2026-targets-achieved-excellence-in-execution-focus-on-value-creation/2449345/amp
- OVHcloud, Octave Klaba, letter to shareholders, employees and customers, 20 October 2026. https://corporate.ovhcloud.com/en/newsroom/news/shareholders-employees-customers-letter/
- Investing.com, “Earnings call transcript: OVHcloud posts stronger FY 2026, lifts growth outlook”, 20 October 2026. https://www.investing.com/news/transcripts/earnings-call-transcript-ovhcloud-posts-stronger-fy-2026-lifts-growth-outlook-93CH-4959036
- HostingJournalist, “OVHcloud Outlines AI Expansion With 110 MW of Power Headroom”, 20 October 2026. https://hostingjournalist.com/news/ovhcloud-outlines-ai-expansion-with-110-mw-of-power-headroom
