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Data Center Outages Are Decreasing but More Costly

The 2026 Global Data Center Survey from Uptime Institute reveals an industry navigating workforce constraints, escalating outage expenses, even as rising costs remain the top concern for management teams.

Financial Pressure and Resource Constraints Intensify

While high costs continue to be a primary concern for data center leaders, the 2026 survey also highlights escalating concerns over capacity forecasting, power availability, and supply chain disruptions.

Power efficiency gains remain gradual. The industry saw minor improvements in average Power Usage Effectiveness (PUE) levels this year. While newer facilities may boast highly efficient designs, overall global progress is slowed by legacy infrastructure.

The AI and Density Reality Check

Despite market enthusiasm for Artificial Intelligence, expectations for AI in data center operations cooled slightly in 2026. Operators express the highest levels of trust for lower-risk AI applications, such as sensor data analytics and predictive maintenance, rather than autonomous control.

Power demands per rack are climbing, driven by AI but also by other enterprise applications. Average modal rack densities continue their slow upward trajectory, with a growing number of operators now reporting peak rack densities of 30 kW or higher to support advanced computing workloads.

Outages: Fewer Incidents, Higher Price Tags:

The 2026 data shows a positive, long-standing trend: fewer operators reported experiencing an impactful outage over the past three years. However, systemic risks are an emerging concern. One in ten outages is still classified as serious or severe, and the financial and operational costs of these failures continue to climb sharply.

Critical Staffing Shortages and Sustainability Progress

The industry talent drought is worsening. More than half of all respondents in 2026 report difficulties finding qualified candidates for open positions, while staff turnover remains a persistent problem — with staff often lured away by other data center companies.

On the environmental front, corporate accountability is rebounding. The share of organizations actively collecting sustainability metrics returned to a gradual upward trend in 2026. Progress is particularly notable in resource tracking, with more than half of all operators now recording their water consumption. But tracking of carbon emissions remains a minority activity.

Methodology: Uptime conducted the survey online and via email and collected responses from more than 800 data center owners and operators. Nearly one in four respondents work for professional IT/data center service providers — that is, staff with operational or executive responsibilities for a third-party data center, such as those offering colocation, wholesale, software, or cloud computing services. The survey participants represent a wide range of industry verticals in multiple countries. More than half (52%) are located in North America and Europe.

The Latest

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ... 

Virtual Private Networks became a cornerstone of enterprise security at a time when corporate infrastructure looked very different from today ... For years, this model worked well. But the architecture behind VPNs assumed a centralized corporate environment—one where the network itself was the hub of activity. In a cloud — first world, that assumption no longer holds ...

Website outages get resolved just as fast in August as they do in November. I went looking for the opposite: the summer slowdown everyone assumes is there once the people who fix things are away. It isn't in the data we collected, covering 1.8 million confirmed outages across tens of thousands of websites ...

This year, many of the cloud infrastructure contracts signed in the early days of the AI boom will come up for renewal. As the year goes on, I anticipate we'll see a significant amount of cloud vendor swapouts and multi-cloud adoption, and the reason isn't just GPU depreciation. It's because they're tired of their current cloud providers ...

There's a moment the many observability teams have experienced days into bringing a new service into production: you realize that the vendor's claims of "intelligent" behavior included a large serving of hype. Their dashboards look nice until they don't, the failure modes are a black box, and no one on the team can confidently explain why the system did what it did at 2 am. Agentic AI is about to force every Ops team to relive that moment at web-scale until they start treating these systems as the dependencies they actually are ...

Data Center Outages Are Decreasing but More Costly

The 2026 Global Data Center Survey from Uptime Institute reveals an industry navigating workforce constraints, escalating outage expenses, even as rising costs remain the top concern for management teams.

Financial Pressure and Resource Constraints Intensify

While high costs continue to be a primary concern for data center leaders, the 2026 survey also highlights escalating concerns over capacity forecasting, power availability, and supply chain disruptions.

Power efficiency gains remain gradual. The industry saw minor improvements in average Power Usage Effectiveness (PUE) levels this year. While newer facilities may boast highly efficient designs, overall global progress is slowed by legacy infrastructure.

The AI and Density Reality Check

Despite market enthusiasm for Artificial Intelligence, expectations for AI in data center operations cooled slightly in 2026. Operators express the highest levels of trust for lower-risk AI applications, such as sensor data analytics and predictive maintenance, rather than autonomous control.

Power demands per rack are climbing, driven by AI but also by other enterprise applications. Average modal rack densities continue their slow upward trajectory, with a growing number of operators now reporting peak rack densities of 30 kW or higher to support advanced computing workloads.

Outages: Fewer Incidents, Higher Price Tags:

The 2026 data shows a positive, long-standing trend: fewer operators reported experiencing an impactful outage over the past three years. However, systemic risks are an emerging concern. One in ten outages is still classified as serious or severe, and the financial and operational costs of these failures continue to climb sharply.

Critical Staffing Shortages and Sustainability Progress

The industry talent drought is worsening. More than half of all respondents in 2026 report difficulties finding qualified candidates for open positions, while staff turnover remains a persistent problem — with staff often lured away by other data center companies.

On the environmental front, corporate accountability is rebounding. The share of organizations actively collecting sustainability metrics returned to a gradual upward trend in 2026. Progress is particularly notable in resource tracking, with more than half of all operators now recording their water consumption. But tracking of carbon emissions remains a minority activity.

Methodology: Uptime conducted the survey online and via email and collected responses from more than 800 data center owners and operators. Nearly one in four respondents work for professional IT/data center service providers — that is, staff with operational or executive responsibilities for a third-party data center, such as those offering colocation, wholesale, software, or cloud computing services. The survey participants represent a wide range of industry verticals in multiple countries. More than half (52%) are located in North America and Europe.

The Latest

Rapid AI adoption and the unique ways AI workloads operate is redefining the scope and structure of what these teams must deliver. This shift is forcing organizations to rethink how they manage scale, automation, and control, according to The State of SRE and Platform Engineering 2026, a new report from Dynatrace ...

AI is usually talked about as a software tool, but it also depends heavily on the network behind it. Whether a company is using AI for chatbots, automation, monitoring, analytics, or employee support, all of that information has to move across the network in a reliable and secure way. That means AI is not just an application decision. It is also an infrastructure decision. Before organizations rush into AI, they should ask a simple question: Is our network ready to support it? ...

Enterprise AI often lacks governed access to where business processes actually execute. Without that access, AI agents may be able to reason, but they cannot operate reliably across enterprise workflows. For AI agents to effectively carry out workflows, they will require integration-layer context and controls. Organizations can implement these prerequisites by providing AI with managed access to the middleware layer ...

Enterprise networks rarely behave the same way for very long. A routing adjustment in one region may unexpectedly alter application performance in another. A cloud migration may introduce hidden dependencies that go unnoticed until an outage occurs. All the while, the network is managed by several different teams, each of whom use different tool sets — and as a result, have different views of the network ... There’s usually an engineer who remembers why traffic fails over a certain way between sites, or which transparent firewall was added where. The problem is that human memory cannot scale alongside enterprise-scale networks ...

Ask an infrastructure team how confident they are in their ability to govern AI, and most will tell you they've got it handled. A recent survey of 406 IT decision-makers and platform engineering leaders found 86% expressing exactly that confidence. Ask the same group whether they have a formal written AI governance policy, and the number drops to 30%, according to Spacelift's Infrastructure Automation Report ...

In MEAN TIME TO INSIGHT Episode 27, Shamus McGillicuddy, EMA VP of Research, Network Infrastructure and Operations, and Parker Hathcock, EMA Research Director covering IT Service/Operations (ServiceOps), discuss observability unification in modern IT operations ... 

Virtual Private Networks became a cornerstone of enterprise security at a time when corporate infrastructure looked very different from today ... For years, this model worked well. But the architecture behind VPNs assumed a centralized corporate environment—one where the network itself was the hub of activity. In a cloud — first world, that assumption no longer holds ...

Website outages get resolved just as fast in August as they do in November. I went looking for the opposite: the summer slowdown everyone assumes is there once the people who fix things are away. It isn't in the data we collected, covering 1.8 million confirmed outages across tens of thousands of websites ...

This year, many of the cloud infrastructure contracts signed in the early days of the AI boom will come up for renewal. As the year goes on, I anticipate we'll see a significant amount of cloud vendor swapouts and multi-cloud adoption, and the reason isn't just GPU depreciation. It's because they're tired of their current cloud providers ...

There's a moment the many observability teams have experienced days into bringing a new service into production: you realize that the vendor's claims of "intelligent" behavior included a large serving of hype. Their dashboards look nice until they don't, the failure modes are a black box, and no one on the team can confidently explain why the system did what it did at 2 am. Agentic AI is about to force every Ops team to relive that moment at web-scale until they start treating these systems as the dependencies they actually are ...