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Why is hosting so much cheaper in the EU - where the hell is my US hetzner?
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Why is hosting so much cheaper in the EU - where the hell is my US hetzner?

BloomVPSBloomVPS Member, Patron Provider

So I was thinking about this when talking to some other hosts and also Radic at ReliableSite. Basically there is no US-equivalent to Hetzner (even the cheapest dedicated hosts on WHT can’t match their AX41). After getting a ton of quotes for colocating here in the US, it’s obvious that the reason for this is that when you consider the cost of a cabinet, why would you fill it with 3600s when for not much more you can fill it with 3900s and have a higher ROI.

So what is it about EU that results in data center racks being so much cheaper? In a lot of cases it’s like 25% of the cost of equivalent space in the US. Is it better infrastructure that allows for cheaper bandwidth/electricity? Is it due to their smaller geographical area? More competition/tighter margins?

Comments

  • Wait for your us datacenter

  • WebProjectWebProject Host Rep, Veteran

    Some EU countries do have gov grants and cheaper electricity and land. Example: France - this is a reason why the OVH mainly in that country.

    Thanked by 2BloomVPS Pwner
  • BloomVPSBloomVPS Member, Patron Provider

    @WebProject said:
    Some EU countries do have gov grants and cheaper electricity and land. Example: France - this is a reason why the OVH mainly in that country.

    That’s interesting, thanks. Maybe I should lobby the government to stop subsidizing corn and start subsidizing data centers. 😁

  • hzrhzr Member

    @BloomVPS said: That’s interesting, thanks. Maybe I should lobby the government to stop subsidizing corn and start subsidizing data centers. 😁

    This is why your power cost is 1/5 of usual EU ones

  • umiumi Member

    Contabo came to US. The vps pricing in St.Louis is almost European ;)

  • BloomVPSBloomVPS Member, Patron Provider

    @hzr said:

    @BloomVPS said: That’s interesting, thanks. Maybe I should lobby the government to stop subsidizing corn and start subsidizing data centers. 😁

    This is why your power cost is 1/5 of usual EU ones

    That’s what I don’t get. If power cost is so much cheaper than the EU, why is rack space so much more expensive? Maybe it’s the bandwidth component?

  • BloomVPSBloomVPS Member, Patron Provider

    @umi said:
    Contabo came to US. The vps pricing in St.Louis is almost European ;)

    I was mostly referring to dedis. Their cheapest US dedicated server is 110 Euros.

  • hzrhzr Member

    @BloomVPS said: That’s what I don’t get. If power cost is so much cheaper than the EU, why is rack space so much more expensive? Maybe it’s the bandwidth component?

    Power is disgustingly cheap in the midwest US. Will point out that OVH does not build in major cities, but instead in odd suburbs "near" them with excellent tax breaks.

  • BloomVPSBloomVPS Member, Patron Provider

    @hzr said:

    @BloomVPS said: That’s what I don’t get. If power cost is so much cheaper than the EU, why is rack space so much more expensive? Maybe it’s the bandwidth component?

    Power is disgustingly cheap in the midwest US. Will point out that OVH does not build in major cities, but instead in odd suburbs "near" them with excellent tax breaks.

    Yeah but even low-end Midwest data centers are more expensive than EU colos. Good point about tax breaks too.

  • hzrhzr Member

    @BloomVPS said: even low-end Midwest data centers

    I haven't found this to be the case, especially since often EU pricing does not include power at all, charged per kwh after

  • OhJohnOhJohn Member

    GorillaServers out of Odgen, Utah advertised a Ryzen 3600 at 39 USD/m just a couple of days ago.

    Can't say anything about them as I never used them.

    But I would recommend to monitor WHT closely. Sometimes there are good deals in all those reseller garbage.

  • BloomVPSBloomVPS Member, Patron Provider

    @hzr said:

    @BloomVPS said: even low-end Midwest data centers

    I haven't found this to be the case, especially since often EU pricing does not include power at all, charged per kwh after

    My search may not be exhaustive, so I believe you. But that brings me back to the crux of this thread. If US data centers really were the same price or less than equivalent EU DCs, why don’t we see a company offering $40 Ryzen dedicated servers like Hetzner has? They would sell like hot cakes.

  • BloomVPSBloomVPS Member, Patron Provider

    @OhJohn said:
    GorillaServers out of Odgen, Utah advertised a Ryzen 3600 at 39 USD/m just a couple of days ago.

    Can't say anything about them as I never used them.

    But I would recommend to monitor WHT closely. Sometimes there are good deals in all those reseller garbage.

    Interesting. Never heard of them but I’ll check it out. I wonder if that’s like a 32GB regular SSD config with no DDOS protection.

  • hzrhzr Member

    @BloomVPS said: why don’t we see a company offering $40 Ryzen dedicated servers like Hetzner has?

    OVH, Hetzner has all inhouse full automation for baremetal setup and orchestration. This removes a huge amount of busywork/warm bodies and since it's inhouse they don't need to pay massive licencing fees (check out how much ubersmith costs per user, not even worth it at that point) for systems like this.

    Thanked by 2jsg Pwner
  • HosthinkHosthink Member, Host Rep

    1- Governmental grants. If your government supports and funds your company, it is not that hard.
    2- Automation. If you reduce 5 staffs, you can offer at least $15/per server discount on 1000 servers

  • @BloomVPS said: In a lot of cases it’s like 25% of the cost of equivalent space in the US.

    Could it be that you are not accounting for VAT in Europe?

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