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Hetzner Prices increase 30-40%

docs.hetzner.com

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Re: Hetzner Prices increase 30-40%

#281

Post by gck1 »

embedding-shape wrote: post #234
infecto wrote: post #225

Earlier quoted context omitted.

Sounds like hyperbole. Yes the world is connected yes we are seeing shortages, yes the market is imperfect and it lags but this is how things get fixed. Prices are sorted out, manufacturers make bets on long term capacity. Some will be losers, some will be winners.

My guess is that many of the current people saying "technology is over and no one will afford their own computer" might have been born after the previous shortages, so it's in reality their first shortage and they have no memories (nor interest reading about) the previous ones, that all eventually washed over, even if at those points there were also people claiming that "No one will have their own SSD in the future,…

This is a different kind of shortage though. Previous ones were cyclical and caused by supply/demand mismatches or natural disasters. This one is structural. The manufacturers are actively choosing to prioritize AI because the margins are dramatically higher, and AI market has virtually unlimited money right now.

> eventually washed over

Eventually is doing a lot of heavy lifting here. Several years of constrained supply have real consequences for people and businesses. Hardware manufacturers are saying most of their capacity is already sold out to AI customers through 2026, and possibly even through 2027 and 2028, with the rest of the markets getting what's left over. This is a fundamentally different market dynamic.

Re: Hetzner Prices increase 30-40%

#282

Post by adrian_b »

gib444 wrote: post #269
octoclaw wrote: post #235

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

[flagged]

When I have looked on Newegg and on Amazon USA last month, I have seen even greater prices than here in Europe, by 30% to 40% greater, which is reversed from previous years, when computers and computer-related components were cheaper in USA than in Europe.

So I think that the victims are all the computer users of the entire world, with the exception of a negligible number of humans tied to the AI companies. Moreover, the US victims appear to be hit by the price hikes even more than in other countries, at least for now.

Re: Hetzner Prices increase 30-40%

#284

Post by gib444 »

raesene9 wrote: post #277
chasd00 wrote: post #123

If you just want an app server pick up an hp elitedesk off ebay and a ups and run it on your home inet connection.

I've just been looking in to this as I've got quite a lot of older hardware that'll be fine for running some websites lying around. My ISP has a static IP option for £5/month, but I reckon I can save £30/month+ on server costs even before any rises. Ofc it does mean I have to do my own sysadmining, but a combination of my general knowledge + an LLM should make that relatively easy.

Watch out for the energy usage. What's electric now, 27p/kWh?

Re: Hetzner Prices increase 30-40%

#285

Post by YetAnotherNick »

marcosdumay wrote: post #276
MrBuddyCasino wrote: post #263

Earlier quoted context omitted.

> That's not normal market dynamics. It is, in fact, normal market dynamics.

A single company that never made a profit outbiding the entire world is normal?

Yes. In fact that's not just normal, that's very frequent in market.

Re: Hetzner Prices increase 30-40%

#286

Post by VWWHFSfQ »

input_sh wrote: post #260
petcat wrote: post #233

Earlier quoted context omitted.

??? Micron has DRAM megafabs in both Idaho and New York state. https://en.wikipedia.org/wiki/Micron_Technology

They don't "have them", they're building them . https://www.micron.com/us-expansion/id > Micron has already achieved key construction milestones on its first Idaho fab with DRAM output scheduled to begin in 2027. https://investors.micron.com/news-releases/news-release-deta... > Production is expected to start in 2030 with the fabs ramping throughout the decade. Until they start outputting DRAM in any meaningful quant…

It looks like it's still a big difference between how the US and EU are responding to the chip supply wars. The US is actually building their own manufacturing capabilities domestically while the EU is apparently doing nothing, which is unfortunate.

Re: Hetzner Prices increase 30-40%

#287

Post by gib444 »

stephenr wrote: post #198
chasd00 wrote: post #123

If you just want an app server pick up an hp elitedesk off ebay and a ups and run it on your home inet connection.

IF you just want a Pizza, pour some tomato ketchup on sliced bread. If you just want to pilot a 747, drive your car really fast at a skate ramp.

A 1000 calorie pizza is often overkill for a meal

A 747 is overkill for a fetching some groceries..

Re: Hetzner Prices increase 30-40%

#288

Post by embedding-shape »

gck1 wrote: post #281
embedding-shape wrote: post #234

Earlier quoted context omitted.

My guess is that many of the current people saying "technology is over and no one will afford their own computer" might have been born after the previous shortages, so it's in reality their first shortage and they have no memories (nor interest reading about) the previous ones, that all eventually washed over, even if at those points there were also people claiming that "No one will have their own SSD in the future,…

This is a different kind of shortage though. Previous ones were cyclical and caused by supply/demand mismatches or natural disasters. This one is structural. The manufacturers are actively choosing to prioritize AI because the margins are dramatically higher, and AI market has virtually unlimited money right now. > eventually washed over Eventually is doing a lot of heavy lifting here. Several years of constrained su…

> caused by supply/demand mismatches

How is that different from today? The scale might be different, but it's quite literally a "supply/demand mismatch" right now.

I don't think what we're seeing today can be described as "structural", at least because it's way too short to make such proclamations today, if it ossifies, then yeah maybe I'd agree with you, it's become structural.

> Several years of constrained supply have real consequences for people and businesses

Indeed, but lets see if it'll go as far as being "several years", the prices already stopped increasing, and supply still isn't planned to be expanded, if either of those changes you might have a point, but as of today it seems like an exaggeration.

Re: Hetzner Prices increase 30-40%

#289

Post by Aurornis »

octoclaw wrote: post #235

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

> It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax.

DRAM is priced based on supply and demand, like every other market.

When demand goes up, the price goes up for everyone. It’s not a “tax” on the rest of us in any sense. There’s just a lot of demand everywhere.

> That's not normal market dynamics.

This is actually a textbook example of markets functioning in response to a demand shock where supply cannot be increased rapidly.

I do find it interesting that so many people think “market rate” means the opposite of what economics teaches, and that prices should stay stable and not change much when the economic conditions change.

I also find it interesting to read all of the “we shouldn’t let them…” takes in response to this situation. The DRAM market is international. Trying to restrict it in one country would just see the data centers get built in another country.

Re: Hetzner Prices increase 30-40%

#290

Post by rm30 »

Western memory manufacturers decided to chase the AI bubble, abandoning the consumer and low-requirement markets entirely.

Chinese manufacturers are now capturing that entire segment with full vertical integration. When this bubble stabilizes, because it will (it's not going to grow to infinite), Western companies won't recapture those markets.

They've already ceded competitive advantage for the next decade. This is a structural shift, not a cyclical shortage.

It's another step in the transformation of Western industry that began in the '80s: the shift from real economy and human-centric production to financialized operations.

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