Amazon's margins are astronomical. Hetzner doesn't need to give up any where near as much consumer surplus as they do in order to compete on price, but having a

Amazon's margins are astronomical. Hetzner doesn't need to give up any where near as much consumer surplus as they do in order to compete on price, but having a solid offering at very low price point is how they have chosen to differentiate themselves from other providers on the VPS to cloud spectrum. Arguably they are competing more against Linode, OVH, digital ocean etc.. Massive respect to them for linking the change to electricity prices rather than just "inflation". They know that by doing this there will be pressure to reverse the increase once electricity prices normalise.