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DigitalOcean vs Hetzner: Complete Comparison Guide

Compare DigitalOcean and Hetzner on pricing, performance, datacenter locations, and managed services. Discover which cloud provider best fits your budget and project requirements.

DigitalOcean

DigitalOcean is an American cloud platform known for its developer-friendly approach. With Droplets (VPS), managed databases, App Platform, and Kubernetes, DigitalOcean provides an accessible cloud experience without the complexity of AWS or GCP. The platform targets startups, developers, and SMBs with transparent pricing and excellent documentation.

Hetzner

Hetzner is a German hosting provider active since 1997, known for its exceptionally competitive pricing. With datacenters in Germany, Finland, and the US, Hetzner offers both dedicated servers and cloud instances. Hetzner is particularly popular in Europe thanks to its combination of low costs, powerful bare-metal servers, and full EU data sovereignty.

Comparison table

FeatureDigitalOceanHetzner
Pricing levelDroplets from $4/month — transparent but higher than HetznerCloud servers from €3.29/month — up to 3x cheaper for comparable specs
Managed servicesManaged databases, Kubernetes, App Platform, Spaces (S3)Limited: only cloud servers, load balancers, and volumes
Datacenter locationsUS, Europe (Amsterdam, Frankfurt), Singapore, India, AustraliaGermany (Falkenstein, Nuremberg), Finland (Helsinki), US (Ashburn)
Bare-metal serversNot available — virtual machines onlyDedicated servers with powerful hardware from €37/month
Developer experienceExcellent UI, CLI, API, and documentation — very beginner-friendlyFunctional but spartan interface — more geared toward experienced users
Data sovereigntyUS company — EU region data possible but US jurisdictionGerman company — fully GDPR-compliant with EU datacenters

Verdict

DigitalOcean and Hetzner both serve the market below the major cloud providers, but with fundamentally different approaches. DigitalOcean offers a polished developer experience with managed services that remove the complexity of infrastructure management. Hetzner excels in pure price-to-performance ratio, offering up to three times more resources for the same price. For European businesses that value data sovereignty, Hetzner as a German company has a clear advantage. The choice comes down to convenience versus cost efficiency.

Our recommendation

At MG Software, we recommend DigitalOcean for clients who want to get started quickly with managed services and appreciate an intuitive interface. For cost-driven projects and clients with strict EU data sovereignty requirements, we recommend Hetzner — the price-to-performance ratio is unmatched. Our own applications run primarily on Vercel and Supabase, but for clients needing dedicated infrastructure, we design architectures on both platforms depending on their priorities.

Further reading

AWS vs Google Cloud comparisonWhat is a VPS?Vercel vs Netlify comparison

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Frequently asked questions

Yes, Hetzner has been managing datacenters since 1997 and has an excellent uptime reputation. Many large European companies use Hetzner for production workloads. The platform offers DDoS protection, redundant networks, and a 99.9% SLA. The lack of managed services does mean you need to manage more yourself.
Yes, DigitalOcean has datacenters in Amsterdam and Frankfurt. Your data is stored in the EU, but DigitalOcean is an American company and falls under US jurisdiction. For strict GDPR compliance, this may be a concern, although DigitalOcean commits to European privacy regulations.
For a small SaaS product, DigitalOcean is typically the better choice thanks to managed databases, App Platform, and easy scalability. If budget is the primary factor and you are comfortable with server management, Hetzner offers significantly more resources for the same cost, allowing you to operate longer on a smaller budget.

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