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Hetzner, a European hosting provider, announced a price increase of up to 50% for its data center services starting April 1, 2026. This change affects both existing and new customers across its data centers in Germany, Finland, the USA, and Singapore.

The company cites rising infrastructure and hardware costs, particularly due to a shortage of memory and components driven by high demand from the AI industry. Analysts predict more price increases in the sector as smaller players like Hetzner transfer costs to customers, unlike larger hyperscalers with long-term supplier agreements.