capital · May 20, 2026
Neon Database Pricing Cuts Compute 15-25% and Storage 80% Post-Databricks Acquisition
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Neon introduced new usage-based pricing in August 2025 after the May 2025 Databricks acquisition. Compute costs fell to $0.14 per CU-hour from $0.16, a 25% reduction, while storage dropped to $0.35 per GB from $1.75, an 80% cut. The changes include a $5 monthly minimum for paid plans and doubled free tier compute to 100 CU-hours in October 2025. Neon operates as part of Databricks infrastructure to deliver operational efficiencies for serverless Postgres. The updates reflect integration with Databricks scale for AI workloads.
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