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Hetzner Prices increase 30-40%

docs.hetzner.com

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Re: Hetzner Prices increase 30-40%

#341

Post by alt227 »

seanmcdirmid wrote: post #200
piva00 wrote: post #157

Earlier quoted context omitted.

That's where capitalism-with-Chinese-characteristics comes into play, since the CCP knows it's a capacity they want to get some independence from the government creates incentives to develop it until it becomes self-sustainable. They have a strategic goal which the government will support while at the same time letting competition do its thing, it's a step above from what other governments used to do with government-…

Why would the CPC (the correct acronym) subsidize cheap GPUs to America? You won’t see huawei GPUs here until their yields are decent enough to make it profitable.

> CPC (the correct acronym)

https://en.wikipedia.org/wiki/Chinese_Communist_Party

Read the very first sentence.

Re: Hetzner Prices increase 30-40%

#342

Post by petcat »

bootsmann wrote: post #335
petcat wrote: post #278

Earlier quoted context omitted.

Well first of all, the CHIPS Act was not "axed", it is federal law passed by an overwhelming bipartisan majority of the House and Senate. It would take a complete reversal of congress to repeal it and it's still very popular among both parties. Where do you get your information from?

> Well first of all, the CHIPS Act was not "axed", it is federal law passed by an overwhelming bipartisan majority of the House and Senate. It would take a complete reversal of congress to repeal it and it's still very popular among both parties. DOGE cut basically all staff from the CHIPS Program Office, congress passed the money but Trump is choosing to turn it into a slush-fund the admin spends on industrial polic…

Once again, where do you get your information from? The only thing that doesn't exist anymore is DOGE itself.

https://wtop.com/government/2025/11/doge-quietly-disbands-8-...

Re: Hetzner Prices increase 30-40%

#343

Post by c16 »

oldherl wrote: post #330
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…

Hetzner should not be compared to AWS or GCP for pricing. It should be compared to Vultr, Linode or DigitalOcean.

Of which DigitalOcean is running very outdated prices at 4USD for 512mb ram.

The cheapest Kimsufi dedicated server with 32GB ram is $11.10/mo.

Re: Hetzner Prices increase 30-40%

#344

Post by Aurornis »

browningstreet wrote: post #334
Aurornis wrote: post #299

Earlier quoted context omitted.

Economic history is full of examples of demand shocks. This is not some unique situation that has never occurred before. This is actually a clean commodity price spike because it’s specifically not for market manipulation or financial engineering. It’s because demand for this product really did explode overnight.

You're being exceedingly pedantic over the use of the colloquialism "DRAM tax" but then you allow "demand shocks". So yeah, everyone's shocked. Weird hill..

Demand shock is not a colloquialism. It’s an real economic term that describes the situation.

https://en.wikipedia.org/wiki/Demand_shock

Tax is also an economic term, which is not what’s happening. Calling it a “tax on consumers” doesn’t make sense because any data centers buying RAM right now are also buying from the same global market.

If commenters just want to be outraged and throw words around then use whatever words you want, I suppose.

Re: Hetzner Prices increase 30-40%

#345

Post by Betelbuddy »

Aurornis wrote: post #289
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…

Saying this is just the market...is like saying housing is a free market after hedge funds buy your entire neighborhood...

Re: Hetzner Prices increase 30-40%

#346

Post by c16 »

iLoveOncall wrote: post #305
tsak wrote: post #264

Earlier quoted context omitted.

But aren't those the same startups that think they need to run on AWS EKS instead of using a single cheap server? The cheapest used Hetzner server currently is €39.24 / month: - Intel Core i7-6700 - 32 GB - 2 x 480 GB Datacenter SSD - 1 GB/s - 20 TB traffic Their VPS are even cheaper. And you can run a lot on this.

Except 40€ a month is extremely poor value for this CPU that's more than a decade old.

For the 5 api requests a second most projects will get, it'll probably do.

Re: Hetzner Prices increase 30-40%

#347

Post by Betelbuddy »

moduspol wrote: post #332
Aurornis wrote: post #289

Earlier quoted context omitted.

> 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…

> Trying to restrict it in one country would just see the data centers get built in another country. I'm surprised this isn't already what's being done. Inference doesn't require super low latency with the client, and the population's support of AI (and especially data centers for it) is waning quickly. This feels like another ideal use case for outsourcing the stuff Americans don't want to see to somewhere that it'l…

> Trying to restrict it in one country would just see the data centers get built in another country.

Sounds like not stressing the electricity infrastructure in Spain, to run inference for Facebook North American posts, should be seen as a positive...

Re: Hetzner Prices increase 30-40%

#348

Post by ac29 »

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…

> They don't "have them", they're building them.

According to wikipedia Micron Fab 6 in Virginia started production in 1997 and is still operating

Re: Hetzner Prices increase 30-40%

#349

Post by handzhiev »

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…

Excuse me, but if the difference between 10 EUR per month and 14 eur per month is going to kill your startup, you probably shouldn't try to start it. Might be time to think about using and creating less memory-hungry software.

Re: Hetzner Prices increase 30-40%

#350

Post by alkonaut »

mv4 wrote: post #190
lnsru wrote: post #147

Can anybody predict this craze? The classical memory manufacturers are not yet adding additional manufacturing capacity. They learned this hard way in the past. That means, the demand is here to stay for years without typical bubble burst. Is this a point where Chinese companies will rise worldwide?

Hard to predict. If the bubble pops (NVIDIA and "circular economy", massive FAANG datacenter expansion plans, huge LLM training budgets) the markets will once again be flooded with components. But, the shortages may very well continue into 2027, leading to some manufacturers going out of business and yet another massive redistribution of wealth.

I just hope the whole thing comes crashing down and we can buy GPUs and RAM again.

I mean I might not have a job in that economy, and my pension might be screwed but I'll have 192GB ram so I should be fine.

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