From 908da852258936ea4fca4953741572ef8d038aa3 Mon Sep 17 00:00:00 2001
From: "kemal.earth" <606977+kemaldotearth@users.noreply.github.com>
Date: Wed, 1 Apr 2026 11:48:43 +0100
Subject: [PATCH] feat(studio): nano exhaustion indicators (#44395)
MIME-Version: 1.0
Content-Type: text/plain; charset=UTF-8
Content-Transfer-Encoding: 8bit

## I have read the
[CONTRIBUTING.md](https://github.com/supabase/supabase/blob/master/CONTRIBUTING.md)
file.

YES

## What kind of change does this PR introduce?

This PR introduces some visual indicators when a Nano project is
exhausting resources on Pro plus plans. The indicator tells the user a
free upgrade to Micro is available via a flashing Nano badge that guides
them to Upgrade and a global banner that notifies them resources are
near exhaustion, please upgrade for free.

| Project List | Project View |
|--------|--------|
| <img width="412" height="223" alt="Screenshot 2026-03-31 at 16 11 19"
src="https://github.com/user-attachments/assets/0d0e7727-e4eb-4ade-9024-528a2501596c"
/> | <img width="1256" height="618" alt="Screenshot 2026-03-31 at 16 11
10"
src="https://github.com/user-attachments/assets/b664e020-2b18-4842-8e64-4e49fac69eef"
/> |

<!-- This is an auto-generated comment: release notes by coderabbit.ai
-->
## Summary by CodeRabbit

* **New Features**
* Free Micro Upgrade banner appears for nano-tier projects near compute
exhaustion with animated visuals and an “Upgrade for free” CTA.
* Compute badge highlights near-exhaustion with glow/shimmer and an
animated upgrade indicator; optional icon support added.
* Per-project banner dismissal is saved locally; dismissed banners
remain hidden.
* **Tests**
  * Added tests covering banner display and dismissal scenarios.
* **Chores**
* Added local-storage keys and telemetry events for banner and upgrade
interactions.
<!-- end of auto-generated comment: release notes by coderabbit.ai -->
---
 .../Home/ProjectList/ProjectCard.tsx          |   2 +
 .../Home/ProjectList/ProjectTableRow.tsx      |   1 +
 .../interfaces/ProjectHome/TopSection.tsx     |   4 +
 .../layouts/ProjectLayout/index.test.tsx      | 155 +++++++++++++++++-
 .../layouts/ProjectLayout/index.tsx           |  46 +++++-
 .../ui/BannerStack/BannerStackProvider.tsx    |   3 +-
 .../Banners/BannerFreeMicroUpgrade.tsx        |  69 ++++++++
 .../components/ui/ComputeBadgeWrapper.tsx     |  71 ++++++--
 apps/studio/tailwind.config.js                |  18 ++
 packages/common/constants/local-storage.ts    |   3 +
 packages/common/telemetry-constants.ts        |  41 +++++
 .../ui-patterns/src/ComputeBadge/index.tsx    |   8 +-
 12 files changed, 398 insertions(+), 23 deletions(-)
 create mode 100644 apps/studio/components/ui/BannerStack/Banners/BannerFreeMicroUpgrade.tsx

diff --git a/apps/studio/components/interfaces/Home/ProjectList/ProjectCard.tsx b/apps/studio/components/interfaces/Home/ProjectList/ProjectCard.tsx
index b04bcaa9bea..f893c0ae9f7 100644
--- a/apps/studio/components/interfaces/Home/ProjectList/ProjectCard.tsx
+++ b/apps/studio/components/interfaces/Home/ProjectList/ProjectCard.tsx
@@ -126,6 +126,8 @@ export const ProjectCard = ({
                     projectRef={project.ref}
                     cloudProvider={project.cloud_provider}
                     computeSize={getComputeSize(project)}
+                    resourceWarnings={resourceWarnings}
+                    badgeClassName="text-[10px] leading-none tracking-[0.07em]"
                   />
                 )}
                 {isVercelIntegrated && (
diff --git a/apps/studio/components/interfaces/Home/ProjectList/ProjectTableRow.tsx b/apps/studio/components/interfaces/Home/ProjectList/ProjectTableRow.tsx
index 03d4e8530ba..7affa6b144d 100644
--- a/apps/studio/components/interfaces/Home/ProjectList/ProjectTableRow.tsx
+++ b/apps/studio/components/interfaces/Home/ProjectList/ProjectTableRow.tsx
@@ -137,6 +137,7 @@ export const ProjectTableRow = ({
                 projectRef={project.ref}
                 cloudProvider={project.cloud_provider}
                 computeSize={getComputeSize(project)}
+                resourceWarnings={resourceWarnings}
               />
             ) : (
               <span className="text-xs text-foreground-muted">–</span>
diff --git a/apps/studio/components/interfaces/ProjectHome/TopSection.tsx b/apps/studio/components/interfaces/ProjectHome/TopSection.tsx
index 0b102da46aa..85eafe9f610 100644
--- a/apps/studio/components/interfaces/ProjectHome/TopSection.tsx
+++ b/apps/studio/components/interfaces/ProjectHome/TopSection.tsx
@@ -7,6 +7,7 @@ import { InlineLink } from 'components/ui/InlineLink'
 import { ProjectUpgradeFailedBanner } from 'components/ui/ProjectUpgradeFailedBanner'
 import { useBranchesQuery } from 'data/branches/branches-query'
 import { useProjectDetailQuery } from 'data/projects/project-detail-query'
+import { useResourceWarningsQuery } from 'data/usage/resource-warnings-query'
 import { useSelectedOrganizationQuery } from 'hooks/misc/useSelectedOrganization'
 import { useIsOrioleDb, useSelectedProjectQuery } from 'hooks/misc/useSelectedProject'
 import { DOCS_URL, PROJECT_STATUS } from 'lib/constants'
@@ -20,6 +21,8 @@ export const TopSection = () => {
   const isOrioleDb = useIsOrioleDb()
   const { data: project } = useSelectedProjectQuery()
   const { data: organization } = useSelectedOrganizationQuery()
+  const { data: resourceWarnings } = useResourceWarningsQuery({ slug: organization?.slug })
+  const projectResourceWarnings = resourceWarnings?.find((w) => w.project === project?.ref)
   const { data: parentProject } = useProjectDetailQuery({ ref: project?.parent_project_ref })
 
   const { data: branches } = useBranchesQuery({
@@ -79,6 +82,7 @@ export const TopSection = () => {
                     slug={organization?.slug}
                     cloudProvider={project?.cloud_provider}
                     computeSize={project?.infra_compute_size}
+                    resourceWarnings={projectResourceWarnings}
                   />
                   {project?.high_availability && <HighAvailabilityBadge />}
                 </div>
diff --git a/apps/studio/components/layouts/ProjectLayout/index.test.tsx b/apps/studio/components/layouts/ProjectLayout/index.test.tsx
index 8fb816cf310..de834e83828 100644
--- a/apps/studio/components/layouts/ProjectLayout/index.test.tsx
+++ b/apps/studio/components/layouts/ProjectLayout/index.test.tsx
@@ -17,6 +17,28 @@ const { mockRouter, mockSetSelectedDatabaseId, mockSetMobileMenuOpen } = vi.hois
   mockSetMobileMenuOpen: vi.fn(),
 }))
 
+const {
+  mockAddBanner,
+  mockDismissBanner,
+  mockProjectState,
+  mockResourceWarningsState,
+  mockBannerDismissedState,
+} = vi.hoisted(() => ({
+  mockAddBanner: vi.fn(),
+  mockDismissBanner: vi.fn(),
+  mockProjectState: {
+    current: {
+      ref: 'default',
+      name: 'Project 1',
+      status: 'ACTIVE_HEALTHY',
+      postgrestStatus: 'ONLINE',
+      infra_compute_size: undefined as string | undefined,
+    },
+  },
+  mockResourceWarningsState: { current: undefined as any[] | undefined },
+  mockBannerDismissedState: { current: false },
+}))
+
 vi.mock('next/router', () => ({
   useRouter: () => mockRouter,
 }))
@@ -47,6 +69,12 @@ vi.mock('common', () => ({
   mergeRefs:
     (..._refs: any[]) =>
     (_value: unknown) => {},
+  IS_PLATFORM: false,
+  LOCAL_STORAGE_KEYS: {
+    FREE_MICRO_UPGRADE_BANNER_DISMISSED: (ref: string) =>
+      `free-micro-upgrade-banner-dismissed-${ref}`,
+  },
+  isFeatureEnabled: () => false,
 }))
 
 vi.mock('framer-motion', () => ({
@@ -121,6 +149,27 @@ vi.mock('@/hooks/custom-content/useCustomContent', () => ({
   useCustomContent: () => ({ appTitle: 'Supabase' }),
 }))
 
+vi.mock('@/hooks/misc/useLocalStorage', () => ({
+  useLocalStorageQuery: () => [mockBannerDismissedState.current, vi.fn()],
+}))
+
+vi.mock('@/components/ui/BannerStack/BannerStackProvider', () => ({
+  BANNER_ID: { FREE_MICRO_UPGRADE: 'free-micro-upgrade-banner' },
+  useBannerStack: () => ({
+    addBanner: mockAddBanner,
+    dismissBanner: mockDismissBanner,
+    banners: [],
+  }),
+}))
+
+vi.mock('@/components/ui/BannerStack/Banners/BannerFreeMicroUpgrade', () => ({
+  BannerFreeMicroUpgrade: () => null,
+}))
+
+vi.mock('data/usage/resource-warnings-query', () => ({
+  useResourceWarningsQuery: () => ({ data: mockResourceWarningsState.current }),
+}))
+
 vi.mock('@/hooks/misc/useSelectedOrganization', () => ({
   useSelectedOrganizationQuery: () => ({
     data: { name: 'Organization 1', slug: 'org-1' },
@@ -128,14 +177,7 @@ vi.mock('@/hooks/misc/useSelectedOrganization', () => ({
 }))
 
 vi.mock('@/hooks/misc/useSelectedProject', () => ({
-  useSelectedProjectQuery: () => ({
-    data: {
-      ref: 'default',
-      name: 'Project 1',
-      status: 'ACTIVE_HEALTHY',
-      postgrestStatus: 'ONLINE',
-    },
-  }),
+  useSelectedProjectQuery: () => ({ data: mockProjectState.current }),
 }))
 
 vi.mock('@/hooks/misc/withAuth', () => ({
@@ -160,6 +202,15 @@ vi.mock('@/state/database-selector', () => ({
   }),
 }))
 
+const renderLayout = () =>
+  render(
+    <MobileSheetProvider>
+      <ProjectLayout product="Database" isBlocking={false}>
+        <div />
+      </ProjectLayout>
+    </MobileSheetProvider>
+  )
+
 describe('ProjectLayout title', () => {
   beforeEach(() => {
     mockRouter.pathname = '/project/[ref]/observability/query-performance'
@@ -210,3 +261,91 @@ describe('ProjectLayout title', () => {
     })
   })
 })
+
+describe('FREE_MICRO_UPGRADE banner', () => {
+  beforeEach(() => {
+    mockRouter.pathname = '/project/[ref]'
+    mockRouter.asPath = '/project/default'
+    mockProjectState.current = {
+      ref: 'default',
+      name: 'Project 1',
+      status: 'ACTIVE_HEALTHY',
+      postgrestStatus: 'ONLINE',
+      infra_compute_size: 'nano',
+    }
+    mockResourceWarningsState.current = [
+      {
+        project: 'default',
+        cpu_exhaustion: true,
+        memory_and_swap_exhaustion: false,
+        disk_space_exhaustion: false,
+      },
+    ]
+    mockBannerDismissedState.current = false
+  })
+
+  afterEach(() => {
+    vi.clearAllMocks()
+    mockRouter.pathname = '/project/[ref]/observability/query-performance'
+    mockRouter.asPath = '/project/default/observability/query-performance'
+    mockProjectState.current = {
+      ref: 'default',
+      name: 'Project 1',
+      status: 'ACTIVE_HEALTHY',
+      postgrestStatus: 'ONLINE',
+      infra_compute_size: undefined,
+    }
+    mockResourceWarningsState.current = undefined
+    mockBannerDismissedState.current = false
+  })
+
+  it('calls addBanner when project is nano and compute is near exhaustion', async () => {
+    renderLayout()
+
+    await waitFor(() => {
+      expect(mockAddBanner).toHaveBeenCalledWith(
+        expect.objectContaining({ id: 'free-micro-upgrade-banner' })
+      )
+    })
+  })
+
+  it('calls dismissBanner when banner was previously dismissed', async () => {
+    mockBannerDismissedState.current = true
+
+    renderLayout()
+
+    await waitFor(() => {
+      expect(mockDismissBanner).toHaveBeenCalledWith('free-micro-upgrade-banner')
+    })
+    expect(mockAddBanner).not.toHaveBeenCalled()
+  })
+
+  it('calls dismissBanner when compute warnings are cleared', async () => {
+    mockResourceWarningsState.current = [
+      {
+        project: 'default',
+        cpu_exhaustion: false,
+        memory_and_swap_exhaustion: false,
+        disk_space_exhaustion: false,
+      },
+    ]
+
+    renderLayout()
+
+    await waitFor(() => {
+      expect(mockDismissBanner).toHaveBeenCalledWith('free-micro-upgrade-banner')
+    })
+    expect(mockAddBanner).not.toHaveBeenCalled()
+  })
+
+  it('calls dismissBanner when project is not nano compute', async () => {
+    mockProjectState.current = { ...mockProjectState.current, infra_compute_size: 'micro' }
+
+    renderLayout()
+
+    await waitFor(() => {
+      expect(mockDismissBanner).toHaveBeenCalledWith('free-micro-upgrade-banner')
+    })
+    expect(mockAddBanner).not.toHaveBeenCalled()
+  })
+})
diff --git a/apps/studio/components/layouts/ProjectLayout/index.tsx b/apps/studio/components/layouts/ProjectLayout/index.tsx
index eff94d559a0..535bbcc1736 100644
--- a/apps/studio/components/layouts/ProjectLayout/index.tsx
+++ b/apps/studio/components/layouts/ProjectLayout/index.tsx
@@ -1,4 +1,5 @@
-import { mergeRefs, useParams } from 'common'
+import { LOCAL_STORAGE_KEYS, mergeRefs, useParams } from 'common'
+import { useResourceWarningsQuery } from 'data/usage/resource-warnings-query'
 import { AnimatePresence, motion } from 'framer-motion'
 import Head from 'next/head'
 import { useRouter } from 'next/router'
@@ -38,8 +39,11 @@ import { RestoringState } from './RestoringState'
 import { UpgradingState } from './UpgradingState'
 import { CreateBranchModal } from '@/components/interfaces/BranchManagement/CreateBranchModal'
 import { ProjectAPIDocs } from '@/components/interfaces/ProjectAPIDocs/ProjectAPIDocs'
+import { BannerFreeMicroUpgrade } from '@/components/ui/BannerStack/Banners/BannerFreeMicroUpgrade'
+import { BANNER_ID, useBannerStack } from '@/components/ui/BannerStack/BannerStackProvider'
 import { ResourceExhaustionWarningBanner } from '@/components/ui/ResourceExhaustionWarningBanner/ResourceExhaustionWarningBanner'
 import { useCustomContent } from '@/hooks/custom-content/useCustomContent'
+import { useLocalStorageQuery } from '@/hooks/misc/useLocalStorage'
 import { useSelectedOrganizationQuery } from '@/hooks/misc/useSelectedOrganization'
 import { useSelectedProjectQuery } from '@/hooks/misc/useSelectedProject'
 import { withAuth } from '@/hooks/misc/withAuth'
@@ -110,6 +114,24 @@ export const ProjectLayout = forwardRef<HTMLDivElement, PropsWithChildren<Projec
     const router = useRouter()
     const { data: selectedOrganization } = useSelectedOrganizationQuery()
     const { data: selectedProject } = useSelectedProjectQuery()
+    const { addBanner, dismissBanner } = useBannerStack()
+    const { data: resourceWarnings } = useResourceWarningsQuery({
+      slug: selectedOrganization?.slug,
+    })
+    const projectResourceWarnings = resourceWarnings?.find(
+      (w) => w.project === selectedProject?.ref
+    )
+    const isComputeNearExhaustion =
+      !!projectResourceWarnings?.cpu_exhaustion ||
+      !!projectResourceWarnings?.memory_and_swap_exhaustion ||
+      !!projectResourceWarnings?.disk_space_exhaustion ||
+      !!projectResourceWarnings?.disk_io_exhaustion
+    const isNanoCompute = selectedProject?.infra_compute_size === 'nano'
+    const showUpgradeBanner = isNanoCompute && isComputeNearExhaustion
+    const [isFreeMicroUpgradeBannerDismissed] = useLocalStorageQuery(
+      LOCAL_STORAGE_KEYS.FREE_MICRO_UPGRADE_BANNER_DISMISSED(selectedProject?.ref ?? ''),
+      false
+    )
     const { showSidebar } = useAppStateSnapshot()
     const { setContent: setMobileSheetContent, registerOpenMenu } = useMobileSheet()
 
@@ -153,6 +175,28 @@ export const ProjectLayout = forwardRef<HTMLDivElement, PropsWithChildren<Projec
       router.pathname.includes('/project/[ref]/logs')
     const showPausedState = isPaused && !ignorePausedState
 
+    useEffect(() => {
+      if (!selectedProject?.ref) return
+      const isProjectHomepage = router.pathname === '/project/[ref]'
+      if (isProjectHomepage && showUpgradeBanner && !isFreeMicroUpgradeBannerDismissed) {
+        addBanner({
+          id: BANNER_ID.FREE_MICRO_UPGRADE,
+          isDismissed: false,
+          content: <BannerFreeMicroUpgrade />,
+          priority: 2,
+        })
+      } else {
+        dismissBanner(BANNER_ID.FREE_MICRO_UPGRADE)
+      }
+    }, [
+      router.pathname,
+      selectedProject?.ref,
+      showUpgradeBanner,
+      isFreeMicroUpgradeBannerDismissed,
+      addBanner,
+      dismissBanner,
+    ])
+
     useLayoutEffect(() => {
       const unregister = registerOpenMenu(() => {
         setMobileSheetContent(
diff --git a/apps/studio/components/ui/BannerStack/BannerStackProvider.tsx b/apps/studio/components/ui/BannerStack/BannerStackProvider.tsx
index 86b27f9a729..59be47502c9 100644
--- a/apps/studio/components/ui/BannerStack/BannerStackProvider.tsx
+++ b/apps/studio/components/ui/BannerStack/BannerStackProvider.tsx
@@ -1,10 +1,11 @@
 import { createContext, useCallback, useContext, useState } from 'react'
 
-const BANNER_ID = {
+export const BANNER_ID = {
   METRICS_API: 'metrics-api-banner',
   INDEX_ADVISOR: 'index-advisor-banner',
   TABLE_EDITOR_QUEUE_OPERATIONS: 'table-editor-queue-operations-banner',
   RLS_EVENT_TRIGGER: 'rls-event-trigger-banner',
+  FREE_MICRO_UPGRADE: 'free-micro-upgrade-banner',
 } as const
 
 export type BannerId = (typeof BANNER_ID)[keyof typeof BANNER_ID]
diff --git a/apps/studio/components/ui/BannerStack/Banners/BannerFreeMicroUpgrade.tsx b/apps/studio/components/ui/BannerStack/Banners/BannerFreeMicroUpgrade.tsx
new file mode 100644
index 00000000000..2c804072c5d
--- /dev/null
+++ b/apps/studio/components/ui/BannerStack/Banners/BannerFreeMicroUpgrade.tsx
@@ -0,0 +1,69 @@
+import { LOCAL_STORAGE_KEYS } from 'common'
+import { useParams } from 'common/hooks'
+import { ChevronsUpAnimated } from 'components/ui/ComputeBadgeWrapper'
+import { useLocalStorageQuery } from 'hooks/misc/useLocalStorage'
+import { useTrack } from 'lib/telemetry/track'
+import Link from 'next/link'
+import { Button } from 'ui'
+import { ComputeBadge } from 'ui-patterns/ComputeBadge'
+
+import { BannerCard } from '../BannerCard'
+import { BANNER_ID, useBannerStack } from '../BannerStackProvider'
+
+export const BannerFreeMicroUpgrade = () => {
+  const { ref } = useParams()
+  const track = useTrack()
+  const { dismissBanner } = useBannerStack()
+  const [, setIsDismissed] = useLocalStorageQuery(
+    LOCAL_STORAGE_KEYS.FREE_MICRO_UPGRADE_BANNER_DISMISSED(ref ?? ''),
+    false
+  )
+
+  return (
+    <BannerCard
+      onDismiss={() => {
+        setIsDismissed(true)
+        dismissBanner(BANNER_ID.FREE_MICRO_UPGRADE)
+        track('free_micro_upgrade_banner_dismissed')
+      }}
+    >
+      <div className="flex flex-col gap-y-4">
+        <div className="flex flex-col gap-y-2 items-start">
+          <div className="animate-badge-pulse">
+            <div className="relative inline-flex overflow-hidden rounded">
+              <ComputeBadge
+                infraComputeSize="nano"
+                icon={<ChevronsUpAnimated />}
+                className="text-brand-600 border-brand-500 bg-brand/10 gap-1"
+              />
+              <span className="animate-badge-shimmer pointer-events-none absolute inset-0 bg-gradient-to-br from-transparent via-brand/20 to-transparent blur-md" />
+            </div>
+          </div>
+        </div>
+        <div className="flex flex-col gap-y-1 mb-2">
+          <p className="text-sm font-medium">Project low on resources</p>
+          <p className="text-xs text-foreground-lighter text-balance">
+            Your Nano compute is approaching its limits. Your Pro plan includes a free upgrade to
+            Micro — double the memory at no extra cost.
+          </p>
+        </div>
+        <div className="flex gap-2">
+          <Button
+            type="primary"
+            size="tiny"
+            asChild
+            onClick={() => {
+              setIsDismissed(true)
+              dismissBanner(BANNER_ID.FREE_MICRO_UPGRADE)
+              track('free_micro_upgrade_banner_cta_clicked')
+            }}
+          >
+            <Link href={`/project/${ref}/settings/compute-and-disk?upgrade=micro`}>
+              Upgrade for free
+            </Link>
+          </Button>
+        </div>
+      </div>
+    </BannerCard>
+  )
+}
diff --git a/apps/studio/components/ui/ComputeBadgeWrapper.tsx b/apps/studio/components/ui/ComputeBadgeWrapper.tsx
index c620cece43f..7f0ba8677e3 100644
--- a/apps/studio/components/ui/ComputeBadgeWrapper.tsx
+++ b/apps/studio/components/ui/ComputeBadgeWrapper.tsx
@@ -1,16 +1,40 @@
+import { getAddons } from 'components/interfaces/Billing/Subscription/Subscription.utils'
+import { ProjectDetail } from 'data/projects/project-detail-query'
+import { useOrgSubscriptionQuery } from 'data/subscriptions/org-subscription-query'
+import { useProjectAddonsQuery } from 'data/subscriptions/project-addons-query'
+import { ProjectAddonVariantMeta } from 'data/subscriptions/types'
+import { ResourceWarning } from 'data/usage/resource-warnings-query'
+import { getCloudProviderArchitecture } from 'lib/cloudprovider-utils'
+import { INSTANCE_MICRO_SPECS } from 'lib/constants'
 import Link from 'next/link'
 import { useState } from 'react'
-import { Button, HoverCard, HoverCardContent, HoverCardTrigger, Separator } from 'ui'
+import { Button, cn, HoverCard, HoverCardContent, HoverCardTrigger, Separator } from 'ui'
 import { ComputeBadge } from 'ui-patterns/ComputeBadge'
 import { ShimmeringLoader } from 'ui-patterns/ShimmeringLoader'
 
-import { getAddons } from '@/components/interfaces/Billing/Subscription/Subscription.utils'
-import { ProjectDetail } from '@/data/projects/project-detail-query'
-import { useOrgSubscriptionQuery } from '@/data/subscriptions/org-subscription-query'
-import { useProjectAddonsQuery } from '@/data/subscriptions/project-addons-query'
-import { ProjectAddonVariantMeta } from '@/data/subscriptions/types'
-import { getCloudProviderArchitecture } from '@/lib/cloudprovider-utils'
-import { INSTANCE_MICRO_SPECS } from '@/lib/constants'
+export const ChevronsUpAnimated = () => (
+  <svg
+    width={10}
+    height={10}
+    viewBox="0 0 24 24"
+    fill="none"
+    stroke="currentColor"
+    strokeWidth="2.5"
+    strokeLinecap="round"
+    strokeLinejoin="round"
+  >
+    <polyline
+      points="17 18 12 13 7 18"
+      className="animate-chevron-up"
+      style={{ animationDelay: '0s' }}
+    />
+    <polyline
+      points="17 11 12 6 7 11"
+      className="animate-chevron-up"
+      style={{ animationDelay: '0.3s' }}
+    />
+  </svg>
+)
 
 const Row = ({ label, stat }: { label: string; stat: React.ReactNode | string }) => {
   return (
@@ -26,6 +50,8 @@ interface ComputeBadgeWrapperProps {
   projectRef?: string
   cloudProvider?: string
   computeSize?: ProjectDetail['infra_compute_size']
+  resourceWarnings?: ResourceWarning
+  badgeClassName?: string
 }
 
 export const ComputeBadgeWrapper = ({
@@ -33,6 +59,8 @@ export const ComputeBadgeWrapper = ({
   projectRef,
   cloudProvider,
   computeSize,
+  resourceWarnings,
+  badgeClassName,
 }: ComputeBadgeWrapperProps) => {
   // handles the state of the hover card
   // once open it will fetch the addons
@@ -71,6 +99,12 @@ export const ComputeBadgeWrapper = ({
   )
 
   const isEligibleForFreeUpgrade = data?.plan.id !== 'free' && computeSize === 'nano'
+  const isComputeNearExhaustion =
+    !!resourceWarnings?.cpu_exhaustion ||
+    !!resourceWarnings?.memory_and_swap_exhaustion ||
+    !!resourceWarnings?.disk_space_exhaustion ||
+    !!resourceWarnings?.disk_io_exhaustion
+  const showUpgradeGlow = isEligibleForFreeUpgrade && isComputeNearExhaustion
 
   const isLoading = isLoadingAddons || isLoadingSubscriptions
 
@@ -79,8 +113,25 @@ export const ComputeBadgeWrapper = ({
   return (
     <HoverCard onOpenChange={() => setOpenState(!open)} openDelay={280}>
       <HoverCardTrigger asChild className="group" onClick={(e) => e.stopPropagation()}>
-        <div className="flex items-center">
-          <ComputeBadge infraComputeSize={computeSize} />
+        <div className={cn('flex items-center', showUpgradeGlow && 'animate-badge-pulse')}>
+          <div
+            className={cn(
+              'flex',
+              showUpgradeGlow && 'relative inline-flex overflow-hidden rounded'
+            )}
+          >
+            <ComputeBadge
+              infraComputeSize={computeSize}
+              icon={showUpgradeGlow && <ChevronsUpAnimated />}
+              className={cn(
+                showUpgradeGlow && 'text-brand-600 border-brand-500 bg-brand/10 gap-1',
+                badgeClassName
+              )}
+            />
+            {showUpgradeGlow && (
+              <span className="animate-badge-shimmer pointer-events-none absolute inset-0 bg-gradient-to-br from-transparent via-brand/20 to-transparent blur-md" />
+            )}
+          </div>
         </div>
       </HoverCardTrigger>
       <HoverCardContent
diff --git a/apps/studio/tailwind.config.js b/apps/studio/tailwind.config.js
index b5fdcf67abc..8d57ee1f28b 100644
--- a/apps/studio/tailwind.config.js
+++ b/apps/studio/tailwind.config.js
@@ -80,6 +80,9 @@ module.exports = config({
 
       animation: {
         shimmer: 'shimmer 2s infinite linear',
+        'badge-shimmer': 'badge-shimmer 3s ease-in-out infinite',
+        'badge-pulse': 'badge-pulse 3s ease-in-out infinite',
+        'chevron-up': 'chevron-up 2s ease-in-out infinite',
         sway: 'sway 3s cubic-bezier(0.4, 0, 0.6, 1) infinite',
       },
       keyframes: {
@@ -91,6 +94,21 @@ module.exports = config({
             'background-position': '1000px 0',
           },
         },
+        'badge-shimmer': {
+          '0%': { transform: 'rotate(-45deg) translateX(-100%)', opacity: '0' },
+          '10%': { opacity: '1' },
+          '40%': { opacity: '1' },
+          '50%': { transform: 'rotate(-45deg) translateX(100%)', opacity: '0' },
+          '100%': { transform: 'rotate(-45deg) translateX(100%)', opacity: '0' },
+        },
+        'badge-pulse': {
+          '0%, 100%': { opacity: '1' },
+          '50%': { opacity: '0.8' },
+        },
+        'chevron-up': {
+          '0%, 100%': { opacity: '0.2' },
+          '50%': { opacity: '1' },
+        },
         sway: {
           '0%, 100%': {
             transform: 'rotate(-10deg) scale(1.5) translateY(4rem)',
diff --git a/packages/common/constants/local-storage.ts b/packages/common/constants/local-storage.ts
index 18c4bca90a5..235cffb2443 100644
--- a/packages/common/constants/local-storage.ts
+++ b/packages/common/constants/local-storage.ts
@@ -116,6 +116,9 @@ export const LOCAL_STORAGE_KEYS = {
 
   TABLE_EDITOR_QUEUE_OPERATIONS_BANNER_DISMISSED: (ref: string) =>
     `table-editor-queue-operations-banner-dismissed-${ref}`,
+  FREE_MICRO_UPGRADE_BANNER_DISMISSED: (ref: string) =>
+    `free-micro-upgrade-banner-dismissed-${ref}`,
+  PRIVACY_NOTICE_ACKNOWLEDGED: 'privacy-notice-acknowledged-2026-03',
 
   /**
    * COMMON
diff --git a/packages/common/telemetry-constants.ts b/packages/common/telemetry-constants.ts
index 8f8914b8915..2b46ced7ad9 100644
--- a/packages/common/telemetry-constants.ts
+++ b/packages/common/telemetry-constants.ts
@@ -2930,6 +2930,44 @@ export interface LogExplorerQueryRunButtonClickedEvent {
   groups: TelemetryGroups
 }
 
+/**
+ * User clicked an upgrade CTA inside the compute badge hover card.
+ *
+ * @group Events
+ * @source studio
+ */
+export interface ComputeBadgeUpgradeClickedEvent {
+  action: 'compute_badge_upgrade_clicked'
+  properties: {
+    computeSize: string
+    planId: string
+    upgradeType: 'pro_upgrade' | 'free_micro_upgrade' | 'compute_upgrade'
+  }
+  groups: TelemetryGroups
+}
+
+/**
+ * User dismissed the free Micro upgrade banner.
+ *
+ * @group Events
+ * @source studio
+ */
+export interface FreeMicroUpgradeBannerDismissedEvent {
+  action: 'free_micro_upgrade_banner_dismissed'
+  groups: TelemetryGroups
+}
+
+/**
+ * User clicked the CTA on the free Micro upgrade banner.
+ *
+ * @group Events
+ * @source studio
+ */
+export interface FreeMicroUpgradeBannerCtaClickedEvent {
+  action: 'free_micro_upgrade_banner_cta_clicked'
+  groups: TelemetryGroups
+}
+
 /**
  * User clicked the Navigate action in the storage explorer header.
  *
@@ -3119,3 +3157,6 @@ export type TelemetryEvent =
   | OrgSubmenuOpenedEvent
   | OrgMenuBackClickedEvent
   | OrgMenuItemClickedEvent
+  | ComputeBadgeUpgradeClickedEvent
+  | FreeMicroUpgradeBannerDismissedEvent
+  | FreeMicroUpgradeBannerCtaClickedEvent
diff --git a/packages/ui-patterns/src/ComputeBadge/index.tsx b/packages/ui-patterns/src/ComputeBadge/index.tsx
index bb25feb2eca..662fb1b6ba2 100644
--- a/packages/ui-patterns/src/ComputeBadge/index.tsx
+++ b/packages/ui-patterns/src/ComputeBadge/index.tsx
@@ -1,5 +1,5 @@
 import { components } from 'api-types'
-import type { HTMLAttributes } from 'react'
+import type { HTMLAttributes, ReactNode } from 'react'
 import { cn } from 'ui'
 
 interface ComputeBadgeProps extends HTMLAttributes<HTMLDivElement> {
@@ -7,9 +7,10 @@ interface ComputeBadgeProps extends HTMLAttributes<HTMLDivElement> {
     | components['schemas']['ProjectDetailResponse']['infra_compute_size']
     | '>16XL'
     | undefined
+  icon?: ReactNode
 }
 
-export function ComputeBadge({ infraComputeSize, className, ...props }: ComputeBadgeProps) {
+export function ComputeBadge({ infraComputeSize, className, icon, ...props }: ComputeBadgeProps) {
   const smallCompute =
     infraComputeSize?.toLocaleLowerCase() === 'micro' ||
     infraComputeSize?.toLocaleLowerCase() === 'nano'
@@ -20,7 +21,7 @@ export function ComputeBadge({ infraComputeSize, className, ...props }: ComputeB
     <div
       className={cn(
         // Base styles
-        'inline-flex items-center justify-center rounded-md text-center font-mono uppercase',
+        'inline-flex items-center justify-center rounded text-center font-mono uppercase',
         'whitespace-nowrap font-medium tracking-[0.06em] text-[11px] leading-[1.1] px-[5.5px] py-[3px]',
         'transition-all',
         // Variant styles
@@ -39,6 +40,7 @@ export function ComputeBadge({ infraComputeSize, className, ...props }: ComputeB
       {...props}
     >
       {infraComputeSize}
+      {icon && <span className="flex items-center">{icon}</span>}
     </div>
   )
 }