OVHcloud price hike shows cloud’s vulnerability to energy costs

When energy costs began to rise steeply in 2021, and precipitously in 2022, it was clear that some digital infrastructure providers would be able to absorb these costs, while others would be forced to pass these costs onto their customers — despite the potential commercial risks.

European cloud provider OVHcloud has announced a 10% price increase on its cloud services, effective from November 2022. In a blog post, the company referenced inflation as the primary driver, citing a global energy inflation rate of 40%. In June 2022, DigitalOcean also increased the prices of nearly all its services, by up to 20% in some cases. Although DigitalOcean did not explain the reason for this increase, it is believed to be partly due to rising costs.