Key Takeaways
- OVHcloud CEO Octave Klaba warns that many cloud services could see price increases of 5‑10 % by mid‑2026, possibly sooner.
- The rise is linked to soaring storage costs driven by artificial‑intelligence workloads.
- OVHcloud already raised prices by roughly 10 % in 2022 due to inflation and energy price spikes.
- The company’s “Shaping the Future” plan sets 2024‑2026 organic revenue growth at 11‑13 % CAGR and aims for a 39 % adjusted EBITDA margin.
- Data‑sovereignty and sustainable‑by‑design cloud services remain core differentiators for the European provider.
Introduction
French cloud provider OVHcloud announced that, as artificial‑intelligence (AI) workloads continue to inflate storage demand, the company expects to raise prices on several cloud services by five to ten percent by mid‑2026, and possibly earlier [^1]. The warning comes from founder and chairman Octave Klaba, who highlighted the “soaring” cost of AI‑driven storage. This follows a previous price adjustment of about ten percent in 2022, which OVHcloud attributed to rising inflation and energy costs [^4]. Alongside the pricing note, OVHcloud presented its 2024‑2026 strategic roadmap—titled “Shaping the Future”—detailing financial targets, growth drivers, and its emphasis on data sovereignty and sustainability [^5][^8].
Background: OVHcloud’s pricing strategy
OVHcloud’s 2022 price increase was the first major adjustment in recent years. The company cited a 40 % inflation rate in France and a 9 % rise in energy prices as the primary drivers, stating that the cost hike would apply to bare‑metal servers, private‑cloud, public‑cloud, and web‑hosting services starting 1 December 2022 [^4]. The move was positioned as a necessary response to “the significant increase in electricity consumption of our infrastructures.”
In the current announcement, Klaba warns that the same pressure is resurfacing, now amplified by AI workloads that demand massive storage capacity.
AI‑driven storage cost pressures
AI applications, particularly large language models and generative AI services, generate unprecedented volumes of data for training and inference. This surge inflates the demand for high‑performance, low‑latency storage, which in turn raises operational costs for cloud providers. OVHcloud’s forecast reflects this trend, anticipating that the cost pressure will compel modest price adjustments across its portfolio.
Industry analysts have noted that the AI boom is reshaping cloud economics, with many providers investing in specialized hardware (GPUs, TPUs) and storage architectures to meet the demand. While OVHcloud does not yet disclose detailed cost breakdowns, its public statements align with broader market observations.
Financial outlook and strategic plan
At its Investor Day on 17 January 2024, OVHcloud unveiled the “Shaping the Future” plan, which sets several financial targets through 2026:
- Weighted‑average organic revenue growth (LFL CAGR) of 11‑13 % for FY2024‑FY2026 [^5][^8].
- Adjusted EBITDA margin approaching 39 % by FY2026 [^5].
- Recurring capex of 12‑14 % of revenue and growth capex of 16‑18 % of revenue [^5].
- Positive free cash flow expected in FY2026 [^5].
Beyond pure financials, the plan emphasizes four strategic pillars:
- Be the data‑sovereignty reference, leveraging OVHcloud’s exemption from extraterritorial laws such as the U.S. Cloud Act.
- Innovate for next‑tech revolutions, notably AI and quantum computing.
- Deliver sustainable and profitable growth through a vertically integrated model that reduces capex intensity.
- Maximise cash generation to support further investments and potential acquisitions.
Klaba’s statement at the event underscored the company’s confidence: “At OVHcloud, we believe that there can be no digital transformation without trust… We are constantly innovating to enable organisations, businesses and individuals to benefit from the opportunities unleashed by the cloud.” [^5]
Market implications
OVHcloud’s projected price adjustments are modest compared with the double‑digit hikes announced by some U.S. hyperscalers for premium GPU services. The European provider’s focus on cost‑transparent pricing—no hidden egress fees and inclusive network charges—continues to differentiate it in a market where price predictability is increasingly valued.
The company’s emphasis on data sovereignty also aligns with growing regulatory scrutiny in Europe, where extraterritorial mandates (e.g., Cloud Act, China’s Cybersecurity Law) limit the appeal of non‑European providers for sectors such as healthcare, finance, and public services. By positioning itself as a sovereign‑cloud champion, OVHcloud aims to capture a larger share of the European market, projected to exceed €13 billion in 2023 and grow at roughly 29 % CAGR through 2027.
Analysts note that while the AI‑driven storage cost surge may pressure margins, OVHcloud’s integrated industrial model—controlling the entire value chain from server manufacturing to datacenter operation—helps maintain a competitive performance‑price ratio, especially for high‑end GPUs like Nvidia A100s.
Conclusion
OVHcloud’s warning of a 5‑10 % price increase by mid‑2026 reflects broader industry dynamics: AI workloads are inflating storage costs, and even cost‑efficient providers must adjust. The company’s “Shaping the Future” roadmap balances these pressures with ambitious financial targets, a focus on data sovereignty, and sustainable growth. Stakeholders—including enterprise customers, regulators, and investors—will watch how OVHcloud navigates the twin challenges of pricing stability and the rapid expansion of AI‑driven cloud demand.
References
[^1]: OVHcloud’s 2026 outlook disappoints market after 1‑billion‑euro … (Oct 20, 2025). “OVHcloud’s 2026 outlook disappoints market after 1‑billion‑euro …“. Yahoo Finance. Retrieved 2025‑11‑24.
[^2]: 70‑hour work weeks no longer enough for Infosys founder (2025‑11‑24). “70‑hour work weeks no longer enough for Infosys founder“. The Register. Retrieved 2025‑11‑24.
[^3]: OVHcloud Investor Day presentation (Jan 17, 2024). “2024‑01‑17 OVHcloud Investor Day Presentation“. OVHcloud. Retrieved 2025‑11‑24.
[^4]: Cloud provider OVH announces price increases of 10 percent (Aug 23, 2022). “Cloud provider OVH announces price increases of 10 percent“. Techzine Global. Retrieved 2025‑11‑24.
[^5]: OVHcloud sees revenue growth 11‑13% EBITDA margin around 39% 2026 (Jan 17, 2024). “OVHcloud sees revenue growth 11‑13% EBITDA margin around 39% 2026“. Reuters. Retrieved 2025‑11‑24.
[^6]: OVHcloud’s 2026 outlook disappoints market after 1‑billion‑euro revenue milestone (2025). “OVHcloud’s 2026 outlook disappoints market after 1‑billion‑euro revenue milestone“. MSN. Retrieved 2025‑11‑24.
[^7]: cPanel price increase 2026 (Oct 14, 2025). “cPanel price increase 2026“. VPSBG. Retrieved 2025‑11‑24.
[^8]: OVHcloud presents its strategic plan, Shaping the Future, and new financial targets for FY2026 (Jan 17, 2024). “OVHcloud presents its strategic plan, Shaping the Future“. OVHcloud. Retrieved 2025‑11‑24.
[^9]: We were wrong about GPUs (2025). “We were wrong about GPUs“. Hacker News. Retrieved 2025‑11‑24.
