Finance team is in full meltdown mode. We built this model in 2022 assuming $0.08/kWh baseline with 3% annual escalation. Q1 2026 renegotiation came back at $0.14/kWh and they're talking "market adjustments" mid-contract. Our virtualization tax was already hurting margins—now we're looking at 40% of rack cost being power alone.
Anyone else getting squeezed? We're on RackNerd currently, considering whether to eat the cost or migrate everything to ARM and cut density. The OpenVZ era taught us nothing about actual resource isolation; at least with proper cgroup limits we can squeeze harder now.
What hedging strategies are people actually using? Power purchase agreements? Geographic arbitrage? Or just praying?