OVHcloud's CEO, Octave Klaba, has warned that the company will have to raise prices for its dedicated server offerings due to the rising costs of memory.

As reported by The Register, Klaba noted in a post onX that the company has now had the latest details on RAM and disk prices for the upcoming quarter, which "allows us to finalize the price impacts for new public cloud and baremetal orders."

"The exercise remains a tightrope walk: we need to place the right volume of orders, month by month, over 12 months, with no guarantee on purchase prices and no way of knowing what our customers' real demand will be," he wrote.

Pricing increases vary from product to product, but Klaba said the average will see a 28 percent increase for "Gen 2024" hardware, and 51 percent for "Gen 2026."

The biggest increase is for Gen 2026 gaming infrastructure, up 87 percent.

On-going commitments won't see price increases, and customers can lock in current prices by subscribing with upfront payments.

Klaba had previously drawn attention to costs rising for memory in June, noting at the time that it was paying six times that of the year prior on RAM, and expected it to be nine times by September 2026, with forecasts for early 2027 to reach 12 times.

Increasing costs are also set to hit NVMe drives, HDD drives, and, to a lesser extent, chips.

Since the post on X, a blog post has been shared by OVHcloud that explains the price increases further and why hardware from 2024 is also included. "To prevent new offers from becoming unaffordable, we have also chosen to apply a price increase to services already in use by our existing customers, but only for very recent equipment using the latest generation of RAM: DDR5. This makes the increase more moderate for everyone, and allows us to continue offering you new equipment at an affordable price."

Dubbed "RAMaggedon," rising memory costs are hitting all the cloud providers, with providers subsequently increasing prices to maintain profit margins as best as possible, including the hyperscalers.

Klaba added: "We are subject to a price update in the second month of each quarter, applicable to the entire quarter: we experience the increase immediately and in full, like any other player in the hardware or cloud market."