psql (9.6.0, server 11.3) on linux

We've ramped up usage on a PG server (a VM, I have no choice about this)
and are approaching the 100 connections limit.  We could increase the
limit, but I've read that this can lead to a degradation in performance. If
we bump it up to 500, what kind of compute resources would that require
(mem/cpu)?  Any estimates ?

Thanks !

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