Hetzner vs UpCloud

Compare Hetzner and UpCloud on capabilities, jurisdiction, assurance, and fit for European buyers.

Both listed as alternatives to: Amazon Web Services (AWS), DigitalOcean, Google Cloud Platform, Microsoft Azure

Logo: Hetzner

Hetzner

Germany· Cloud Computing

Needs review

Shortlist for German-owned IaaS/bare metal in DE/FI parks, API cloud VMs, inclusive-traffic EU economics, ISO 27001 + BSI C5 Type 2. Skip for hyperscaler PaaS depth, SOC 2-first audits, or zero US-group footprint (optional US Ashburn/Hillsboro + Singapore via subsidiaries/colocation). Prefer OVHcloud/Scaleway for broader EU portfolios; STACKIT for DE public-sector framing.

EU-operated (DE HQ)Owned DE/FI parksISO 27001:2022BSI C5 Type 2Bare metal + auctionOptional US/SG cloud
Logo: UpCloud

UpCloud

Finland· Cloud Computing

Needs review

Shortlist UpCloud when you want Finnish-contracted IaaS with MaxIOPS storage, CNCF Managed Kubernetes, managed open-source databases, and customer-pinned EU regions—plus optional global PoPs. Skip when you need hyperscaler-only PaaS depth or the absolute lowest bare-metal VPS pricing; consider Hetzner, Scaleway, or AWS/Azure/GCP depending on that gap.

Finnish-operated IaaSMaxIOPS block storageCNCF Managed KubernetesISO 27001 (claimed)Selectable EU regionsZero-cost egress policy
Hetzner vs UpCloud: Snapshot
FeatureLogo: HetznerHetznerLogo: UpCloudUpCloud
Country of originGermanyFinland
CategoryCloud ComputingCloud Computing
Open sourceNoNo
Self-hostedNoNo
HeadquartersGermanyFinland
Legal entityHetzner Online GmbH, Industriestr. 25, 91710 Gunzenhausen (HRB 6089 Ansbach)UpCloud Oy (Business ID 2431560-5), Aleksanterinkatu 15 B, 00100 Helsinki
Governing lawNot listedFinland (Terms of Service; arbitration Helsinki)
US parent / controlNo known US parentNo known US parent
CLOUD Act exposure (indicative)MediumMedium
Hosting / residencyOwned parks: Nuremberg, Falkenstein (DE), Helsinki (FI). Non-cloud EU-only. Cloud optional US (Ashburn, Hillsboro) and Singapore on 3rd-party colocation. AV subprocessors: Hetzner Finland Oy; US: Hetzner US LLC, NTT Americas, QTS Hillsboro; SG: Hetzner Singapore, NTT SG1. Master data stays EU.Customer-selected regions across 15 DCs (EU majority: FI, SE, NO, DK, DE, NL, ES, PL, UK; plus US-CHI/NYC/SJO, SG, AU) in colocations (Equinix, Digital Realty, CoreSite, Telia, Verne, Green Mountain, etc.). Customer Data stays in chosen DC. Vendor: EU VMs have no customer-data subprocessors; group subsidiaries only otherwise. Account data in Finland with global support access (incl. US/SG). Payments/hCaptcha are separate third parties.
Summary

German data center operator (Gunzenhausen): dedicated servers, Hetzner Cloud VPS, storage, and owned parks in Germany and Finland, with optional US and Singapore cloud locations.

Finnish IaaS from UpCloud Oy (Helsinki): MaxIOPS block storage, Cloud Servers, managed Kubernetes and databases across 15 global regions with customer-selected residency.

Tags
At a glance: Hetzner vs UpCloud
At a glanceLogo: HetznerHetznerLogo: UpCloudUpCloud
HQGunzenhausen, GermanyHelsinki, Finland
Legal entityHetzner Online GmbH (HRB 6089 Ansbach)UpCloud Oy (2431560-5)
EU parksNuremberg, Falkenstein (DE); Helsinki (FI)Not listed
Optional cloud regionsAshburn and Hillsboro (US); SingaporeNot listed
ModelIaaS / dedicated / hosting (unmanaged cloud and root)Not listed
Open sourceNo (commercial infrastructure)No (platform proprietary)
FoundedNot listed2011
RegionsNot listed15 DCs / 12 countries (EU-heavy + US/APAC)
Self-hostedNot listedNo (public/private cloud IaaS)
Commercial modelNot listedHourly pay-as-you-go; trial credits; zero-cost egress policy
Key capabilities: Hetzner vs UpCloud
Key capabilitiesLogo: HetznerHetznerLogo: UpCloudUpCloud
EU-operated (DE HQ)YesNot listed
Owned DE/FI parksYesNot listed
ISO 27001:2022YesYes
BSI C5 Type 2YesNot listed
Bare metal + auctionYesNot listed
Optional US/SG cloudYesNot listed
Finnish-operated IaaSNot listedYes
MaxIOPS block storageNot listedYes
CNCF Managed KubernetesNot listedYes
Selectable EU regionsNot listedYes
Zero-cost egress policyNot listedYes

Hetzner

  • Dedicated root servers and Server Auction

    Bare-metal root servers with full hardware isolation for predictable I/O and custom OS installs. The Server Auction lists surplus or end-of-primary-use machines at declining prices for labs, secondary environments, and cost-sensitive dedicated capacity.

  • Hetzner Cloud with API, networks, and apps

    VMs with shared or dedicated vCPU classes, managed via Console, REST API, and CLI. Private networks, stateful firewalls, load balancers, Linux images, Terraform/Ansible/Kubernetes integrations, and one-click apps (Docker, Nextcloud, GitLab CE, WireGuard, and more) for self-hosted stacks.

  • Owned EU data center parks plus optional US/Singapore cloud

    Company-operated parks in Nuremberg, Falkenstein (Germany), and Helsinki (Finland). Cloud also in Ashburn, Hillsboro (USA), and Singapore on third-party colocation. Non-cloud products and EU-selected cloud locations keep server data in the EU per Hetzner docs; master data stays in the EU.

  • ISO 27001, BSI C5 Type 2, and console DPA

    Public ISO/IEC 27001:2022 certificate for DE/FI park scope; BSI C5 Type 2 for cloud; Art. 28 DPA accept-in-console with published TOMs and annual external TOM review available to DPA customers. Not a SOC 2-first vendor.

  • Inclusive traffic-oriented European cloud pricing model

    Pay-as-you-go cloud (hourly or monthly) and list-based dedicated servers, with marketing emphasis on high inclusive traffic on European plans versus hyperscaler egress bills. Confirm current allowances and rates only on the official calculator—figures change by region and over time.

UpCloud

  • MaxIOPS clustered block storage

    In-house all-flash block tier rated up to ~100,000 read IOPS at 4K, separate from compute hosts, with Standard and Archive tiers for capacity. Attach up to 16 devices per server (up to 64 TB total); encryption at rest optional. Suits databases and I/O-heavy apps that outgrow commodity cloud disks.

  • Cloud Servers on AMD EPYC with automation

    Linux/Windows VMs with Starter, Premium, and Cloud Native plan families, hot resize options, firewall, utility and SDN private networking. Full lifecycle via control panel, REST API, CLI, Terraform/OpenTofu, Pulumi, and Crossplane—for teams automating fleets rather than clicking one-off VPS.

  • CNCF Managed Kubernetes (UKS)

    Managed control planes with CNCF-certified Kubernetes versions, autoscaler integration, CSI block volumes, load-balancer integration, and private-only clusters. Worker nodes use ordinary Cloud Server plans including Private Cloud hosts—good fit when you want K8s without running etcd yourself.

  • Managed PostgreSQL, MySQL, Valkey, OpenSearch

    Turnkey databases with automated backups, multi-node HA options, private utility/SDN connectivity, and point-in-time recovery on relational plans. Reduces ops load for product teams that still want open engines rather than proprietary hyperscaler databases.

  • Customer-selected global regions (EU-first footprint)

    Fifteen data centers across twelve countries: dense Northern/Central Europe (Helsinki x2, Stockholm, Stavanger, Copenhagen, Amsterdam, Frankfurt, Madrid, Warsaw, London) plus US, Singapore, and Sydney. Customer Data stays in the chosen zone unless you request a move—use EU zones for residency programmes.

  • Zero-cost egress packaging and 99.999% SLA line

    Public pricing emphasises no per-GB internet egress charges under a Fair Transfer Policy, plus Premium-class 99.999% SLA with service credits for unscheduled downtime. Simplifies bills for chatty APIs and multi-service architectures compared with classic egress meters—confirm fair-use limits for extreme transfer cases.

Assurance & compliance: Hetzner vs UpCloud
Assurance & complianceLogo: HetznerHetznerLogo: UpCloudUpCloud
Independent security / no-logs audit
Not applicable

Hosting/IaaS, not a no-logs VPN. Public ISO 27001, BSI C5 Type 2, and annual TOM review (TUV Rheinland) instead.

Vendor claimed

Vendor states cloud services audited against Finnish PiTuKri criteria by an independent firm; ISO 27001 ISMS regularly audited. Public PiTuKri report not fully reproduced on marketing pages—request artefacts.

ISO 27001
Verified

ISO/IEC 27001:2022; public SOCOTEC certificate. Scope: infrastructure, operation, support of Nuremberg, Falkenstein, Helsinki parks.

Vendor claimed

Vendor asserts ISO 27001 certified ISMS and publishes certificate PDF; independent registry re-check not completed in this draft.

SOC 2 / SOC 3
Not found

Hetzner states focus on ISO 27001 rather than SOC 2 for international market.

Not found

Facility providers list SOC reports; no clear first-party UpCloud SOC 2 Type II product claim found on compliance pages reviewed.

GDPR / EU data protection
Vendor claimed

German entity; public privacy policy, Art. 28 DPA, TOMs, subprocessor list. Customer remains controller for data on rented systems.

Vendor claimed

Finnish controller/processor under GDPR; customer chooses region; DPA in ToS; CISPE Code of Conduct adherence claimed.

US CLOUD Act exposure (indicative)
Partial

EU entity / no known US parent, but optional US cloud uses Hetzner US LLC and US colocation (NTT, QTS); Singapore similarly. EU placements keep server data in EU per docs. Not legal advice.

Partial

Finnish entity / no known US parent; EU-region VMs can avoid US storage. Material exceptions: optional US DCs, US/SG support affiliates for account ops, US colocations if selected. Assessment not a vendor safety claim. Not legal advice.

Data processing agreement (B2B)
Vendor claimed

Standard DPA accept-in-console; sample PDF published; no custom wet-ink DPAs per vendor docs.

Vendor claimed

DPA incorporated into Terms of Service; binding on acceptance without separate signature per vendor.

EU AI Act
Not applicable

Infrastructure hosting, not an AI system product.

Not applicable

General-purpose IaaS/platform; not an AI system provider by primary product.

BSI C5 (cloud)
Verified

Vendor publishes BSI C5 Type 2 attestation PDF for cloud services (German BSI catalogue).

Not listed
KRITIS / section 8a BSIG
Vendor claimed

Hetzner states BSI classification as operator of critical services and certification under section 8a BSIG.

Not listed
CISPE Code of ConductNot listed
Vendor claimed

Vendor states adherence to CISPE data protection code for cloud infrastructure providers.

Considerations & known limitations: Hetzner vs UpCloud
Considerations & known limitationsLogo: HetznerHetznerLogo: UpCloudUpCloud
Optional US and Singapore cloud regions
Medium

Ashburn, Hillsboro, and Singapore use third-party colocation and local subsidiaries; server content placed there leaves the EU. Zero-US-footprint policies may still reject the vendor even for EU-only workloads.

Not listed
Unmanaged cloud and dedicated servers
Medium

You own OS patching, app security, and backups. Platform firewalls help but do not replace customer ops. Poor fit if you need managed DBaaS and full-stack ops.

Not listed
Narrower managed-service catalog vs hyperscalers
Low

Strong IaaS and bare metal; weak match if procurement assumes AWS-parity managed services. Plan hybrid architecture early.

Not listed
ISO scope is DE/FI parks
Low

Published ISO 27001 scope centers on German and Finnish parks. Do not assume identical coverage for every US/Singapore deployment without reading current certificates.

Not listed
Optional non-EU regions and support accessNot listed
Medium

US, Singapore, and Sydney zones are first-class options. Mis-pinned workloads or defaults can place Customer Data outside the EU. Account information is accessible to non-EEA support staff even when VMs stay in Europe.

Narrower catalogue than hyperscalersNot listed
Low

Strong IaaS and focused managed services; missing many proprietary AWS/Azure/GCP PaaS and AI products. Multi-cloud or dual-vendor designs may still be required.

Limited public SOC 2 for UpCloud entityNot listed
Medium

ISO 27001 and PiTuKri claims are published; a customer-facing SOC 2 Type II for UpCloud itself was not found. Enterprise questionnaires may need NDA artefacts or reliance on ISO plus facility reports.

Colocation facility dependencyNot listed
Low

Platform runs in third-party data centres. Facility certifications differ by site; treat them as complementary to UpCloud’s own ISMS, not a substitute for vendor due diligence.

Fair Transfer Policy on zero egressNot listed
Low

Zero-cost egress is a commercial differentiator but is governed by a Fair Transfer Policy—extreme or abusive transfer patterns may fall outside the marketing promise. Validate for CDN-scale or bulk egress designs.

Fit

Hetzner

Best fit when

  • Teams that want German-jurisdiction hosting with owned parks in Germany and Finland
  • Workloads that need bare-metal root servers or cost-effective dedicated via Server Auction
  • Ops-heavy orgs comfortable with unmanaged IaaS (Console/API/CLI, Terraform, apps)
  • Buyers optimizing for EU residency plus inclusive traffic economics versus hyperscaler egress
  • German/EU checklists asking for ISO 27001, BSI C5, and an Art. 28 DPA in-console

Poor fit when

  • Orgs that need a full AWS/Azure-style managed services catalog (PaaS, serverless, AI)
  • Policies that forbid any US subsidiary, US colocation, or optional US region at group level
  • Buyers requiring SOC 2 as the primary assurance artifact (Hetzner focuses on ISO/C5)
  • Teams expecting fully managed OS patching, databases, and DR without operating the stack

Consider instead when

  • When: You need a broader European cloud portfolio or more managed service surface

    Consider: OVHcloud or Scaleway

    Still European operators; compare regions, bare-metal depth, and support models.

  • When: German public-sector sovereign cloud framing is the primary procurement driver

    Consider: STACKIT

    Different product and governance story; verify current certifications and residency.

  • When: You need hyperscaler managed depth more than EU-owned IaaS

    Consider: AWS, Azure, or Google Cloud (accept US-group CLOUD Act posture)

    Trade EU operator control for catalog breadth.

  • When: You want a smaller EU regional cloud with a different feature/region mix

    Consider: Exoscale or UpCloud

    Compare locations, SLAs, and managed options against Hetzner's park scale.

UpCloud

Best fit when

  • EU product teams needing IaaS with Finnish legal entity and pin-to-zone residency
  • Workloads sensitive to block I/O that benefit from MaxIOPS-class SSDs
  • Cloud-native stacks on managed Kubernetes plus managed PostgreSQL/MySQL/Valkey
  • Multi-service apps where predictable outbound transfer packaging matters
  • Agencies and SaaS operators standardising on API/Terraform automation

Poor fit when

  • Organisations that require a full hyperscaler catalogue (proprietary AI/PaaS breadth)
  • Buyers optimising solely for the lowest-cost bare metal or unlimited-traffic VPS
  • Programmes that forbid any non-EU group support access to account metadata without extra controls
  • Teams that will deploy only to US regions yet still market the stack as EU-sovereign

Consider instead when

  • When: You need cheaper raw compute or dedicated servers more than managed K8s packaging

    Consider: Hetzner

    Often stronger on price for VPS/dedicated; compare managed service depth separately.

  • When: You want a broader French/EU public-cloud portfolio or different regional SKUs

    Consider: OVHcloud or Scaleway

    Different product breadth and commercial culture; still European-operated peers.

  • When: You need hyperscaler-managed platforms, global enterprise contracts, or deep marketplace ecosystems

    Consider: AWS, Google Cloud, or Microsoft Azure

    Trade European HQ simplicity for catalogue depth and global account teams.

  • When: You want a compact European cloud with Swiss roots and a tighter region set

    Consider: Exoscale

    Compare region map and managed feature parity to UpCloud’s 15-DC footprint.

Open questions for due diligence

Hetzner

  • Does your policy allow a German provider that also offers US/Singapore regions if you only deploy in DE/FI?
  • Is BSI C5 Type 2 + ISO 27001 sufficient, or is SOC 2 mandatory for your auditors?
  • Which SKUs (cloud vs dedicated vs managed web hosting) match your backup and support needs?
  • Will you need regions or managed services Hetzner does not offer natively (CDN, managed DB, AI APIs)?

UpCloud

  • Obtain current ISO 27001 certificate scope/dates and any PiTuKri or other audit reports under NDA if required.
  • Confirm DPA Appendix 1 legal names and countries of all group-company subprocessors for your service mix.
  • Document which regions and backup/object-storage endpoints will be allow-listed for EU-only programmes.
  • Ask whether a SOC 2 or equivalent report for UpCloud Oy is available for enterprise review.
  • Validate Fair Transfer Policy thresholds for your expected egress profile.