I think the situation may not reflect cost of hands and housing. But the sunk cost of Hetzner to be in Germany, compared with the break-ground cost to construct their existing model in the rest of the world: I think that part is true. Selling off services in German hosted racks is at this point, massive profit on low price because the sunk cost has already been covered. They are sweating an asset into people like us, who want cheap disk but not the 100% reliable coverage of a contract which gives us replication, offsite, 3-2-1 class services. If they took that into the US the sunk cost component would not be covered, their sell price would be significantly less profitable.

The cost of hands and housing for hands, yea thats marginal in this.

Dutchie here married to someone from the Midwest. Can confirm, those houses look really cheap there. It was one of the reasons why we considered living there. But the Netherlands won out over other things (e.g. healthcare).