UPTIME INSTITUTE GLOBAL DATA CENTER SURVEY 2023

Executive summary
July 2023

Uptime Institute Global

UII KEYNOTE REPORT 106 • JULY 2023
FINANCE & STRATEGY

Data Center Survey 2023 Uptime Institute Global

Data Center Survey 2023
Operators face an expanding range of challenges

The Uptime Institute Global Data Center Survey, The Uptime Institute Global Data Center Survey, now in its 13th year, is the
most comprehensive and longest-running study of its kind. The findings

now in its 13th year, is the most comprehensive

in this report highlight the experiences and strategies of data center
owners and operators in the areas of resiliency, sustainability, efficiency,
regulations, staffing, cloud and innovative technologies.

and longest-running study of its kind. The

Authors
Douglas Donnellan, Senior Research Associate Dr. Owen Rogers, Research Director for Cloud Computing
Daniel Bizo, Research Director Lenny Simon, Research Analyst
Jacqueline Davis, Research Analyst Max Smolaks, Research Analyst

findings in this report highlight the experiences

Andy Lawrence, Executive Research Director

and strategies of data center owners and

operators in the areas of resiliency, sustainability,
efficiency, regulations, staffing, cloud and
innovative technologies.
© COPYRIGHT 2023 UPTIME INSTITUTE. ALL RIGHTS RESERVED

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Synopsis
The Uptime Institute Global Data Center Survey 2023 reveals an
industry that continues to grow in importance and scale, but must
overcome a widening range of challenges. Operators face ever
stricter regulations and pressure to reduce energy use, along with
persistent staffing and supply chain issues. New technologies
present a promising way forward — but are expensive and lack
standardization and scalability. While investments in efficiency and
resiliency are starting to pay off for many organizations, progress is
slow with a growing proportion of workloads being outsourced.

• Average global power usage effectiveness • Enterprise operators say data security
(PUE) levels, have remained flat for four is the biggest impediment to moving
years. Further improvements in PUE mission-critical workloads to the public
levels will require a wave of investment. cloud.
• The share of workloads placed in • Server rack densities are climbing —
corporate, on-premises facilities has steadily, but slowly. Most operators do not
fallen below half — and is expected to have any racks beyond 20 kW.
shrink further — as more organizations
• AI in data center facilities will be adopted
opt for a hybrid approach to IT.
cautiously. Operators are distrustful of
• More than half (55%) of operators say its ability to make reliable operational
they have had an outage at their site in the decisions.
past three years. This continues a trend of
steady improvement.
• About 8% of the data center workforce
are women. In the US, this rate is below
that of mining and construction.

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

UII KEYNOTE REPORT 106 • JULY 2023

FINANCE & STRATEGY

Uptime Institute Global

Data Center Survey 2023
Operators face an expanding range of challenges
Contents
Introduction —————————————————————————————————————————— 5
The Uptime Institute Global Data Center Survey, now in its 13th year, is the
most comprehensive and longest-running study of its kind. The findings
in this report highlight the experiences and strategies of data center
owners and operators in the areas of resiliency, sustainability, efficiency,
regulations, staffing, cloud and innovative technologies.

Authors
Douglas Donnellan, Senior Research Associate Dr. Owen Rogers, Research Director for Cloud Computing

Industry benchmarks ———————————————————————————————————— 6

Daniel Bizo, Research Director Lenny Simon, Research Analyst
Jacqueline Davis, Research Analyst Max Smolaks, Research Analyst
Andy Lawrence, Executive Research Director

Average PUEs remain flat — for four years ————————————————————————— 6

Long, slow climb in rack density ——————————————————————————————— 8
© COPYRIGHT 2023 UPTIME INSTITUTE. ALL RIGHTS RESERVED

Sustainability and metrics ———————————————————————————————— 11

Organizations focus on efficiency over carbon —————————————————————— 11
Server refresh cycles continue to slow ——————————————————————————— 12
Resiliency and outages —————————————————————————————————— 14
Operators report fewer disruptive outages ———————————————————————— 14
Impact of outages is decreasing —————————————————————————————— 15
Cost of outages remains high ———————————————————————————————— 16
Power issues are the top cause of disruption ——————————————————————— 16
Investing to increase resiliency ——————————————————————————————— 17
Management and regulation ——————————————————————————————— 18
Most corporate IT is running off premises ————————————————————————— 18
Opinions on regulations depend on geography —————————————————————— 20
Cloud and provisioning —————————————————————————————————— 22
Data security, not infrastructure, blocks cloud adoption ————————————————— 22
Cloud providers’ customers need more support —————————————————————— 23
Staffing shortfalls —————————————————————————————————————— 24
Pipelines are dry, poaching is high ————————————————————————————— 24
Data centers are still a boys’ club —————————————————————————————— 27
Innovation and impact ——————————————————————————————————— 28
Perception of AI’s looming influence does not reflect reality ——————————————— 28
Appendix: Survey methodology and demographics ———————————————— 30

Uptime Institute Intelligence is an independent unit of Uptime Institute dedicated to identifying, analyzing and explaining the trends,
technologies, operational practices and changing business models of the mission-critical infrastructure industry. For more about Uptime
Institute Intelligence, visit uptimeinstitute.com/ui-intelligence or contact [email protected].

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Introduction
The 13th annual Uptime Institute Global Data Center Survey is the most comprehensive
and longest-running study of its kind. The survey tracks the state of the industry in terms
of resiliency, sustainability, efficiency, regulations, staffing, cloud and the use of innovative
technologies.
The survey was conducted online from February 2023 to April 2023 and collected
responses from more than 850 data center owners and operators, as well as nearly
700 vendors and consultants. This report focuses on owners and operators of digital
infrastructure (an analysis of the experiences and views of vendors and consultants will
be published separately). For more details, including demographics, see the Appendix.
For the first time, the survey asked operators to identify and weigh up some of their
key management concerns. While the lingering effects of the COVID-19 pandemic have
receded in 2023, new challenges have taken their place: digital infrastructure managers
are now most concerned with improving energy performance and dealing with staffing
shortfalls (see Figure 1). Government commitments to reduce carbon emissions are
nearing their target deadlines and, as a result, regulations aimed at data center energy
use require urgent attention, investment and action.

Figure 1 Staffing and energy efficiency are managers’ top concerns

Looking at the next 12 months, how concerned is your digital infrastructure management
regarding each of the following issues? (n=629)
Improving energy performance for facilities equipment

33% 35% 20% 12%

A lack of qualified staff

30% 41% 21% 9%

Improving energy performance for IT

30% 35% 23% 12%

Forecasting future data center capacity requirements

27% 39% 24% 10%

Procuring equipment needed to meet higher capacity demand

26% 42% 21% 11%

Very concerned Somewhat concerned Slightly concerned Not concerned

(Only the top five response categories are shown.)
(All figures rounded.)

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Sustainability and metrics

In several studies in recent years, Uptime has noted that the collection and reporting of
sustainability-related data, and the calculation of related metrics, is patchy at best.
Once again, the survey confirms this view. Many operators will struggle to meet emerging
sustainability reporting requirements, or indeed the requirements of some customers and
even the public.

Organizations focus on efficiency over carbon

Sustainability reporting today focuses primarily on infrastructure (energy) efficiency rather
than reducing carbon emissions (see Figure 6). One interpretation of this is that operators
have chosen to focus on tracking the amount of work (e.g., CPU cycles) that can be derived
from a resource, such as a unit of power, rather than minimizing the carbon footprint
of that resource. The data, however, may tell a simpler story: power consumption, PUE
and water are easy to track, and any improvement in these areas can often save money.
Carbon reduction — which, of course, can be partly achieved by good energy management
— is much more complicated and less directly rewarding.

Figure 6 IT / data center power consumption is top reporting priority

Which IT or data center metrics do you compile and report for corporate sustainability
purposes? Choose all that apply. (n=716)
IT or data center power consumption

88%
PUE

71%
Server utilization

40%

Water usage

41%

Renewable energy consumption

34%
eWaste or equipment lifecycle

29%
Scope carbon emissions
Scope 1 Scope 2 Scope 3

28% 19% 14%

(“Renewable energy consumption" was not an option in 2022.)

(2022 options included "Scope 1 and 2 carbon emissions" and "Scope 1, 2 and 3 carbon emissions".)

UPTIME INSTITUTE GLOBAL SURVEY OF IT AND DATA CENTER MANAGERS 2023

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Resiliency and outages

Uptime data shows that data center owners / operators have been investing in resiliency,
adding more redundancy. In spite of this, outages remain an issue.
Tracking outages in data center infrastructure, which includes the IT and networks,
is saddled with complexities. What constitutes an outage, how severe it is, and what
is understood as a root cause have all become less clear in the highly interconnected
world of IT services. Despite the industry’s shared mission of delivering highly reliable
and available digital infrastructure, many outages and their root-cause analyses remain
hidden from public view; nondisclosure is still the first instinct of many operators.
Unfortunately, this environment means outage data is inevitably ambiguous and
incomplete, which prevents the industry from learning potentially useful lessons on
how to avoid or contain similar incidents. Despite these difficulties, Uptime’s outage
data has been largely consistent over many years.

Overall, the picture Overall, the picture that has emerged is one of gradual improvements (i.e., reductions)
that has emerged in the frequency and severity of outages in data centers. This may be surprising to some,
is one of gradual given the increased press coverage of data center outages in recent years. But this
reductions in the coverage has more to do with the growing importance of digital services to everyday
frequency and life, and the swell in the global data center footprint. The data does not point to any
severity of outages deterioration in the average number of incidents per site.
in data centers.
Operators report fewer disruptive outages
Uptime has tracked a steady improvement in the outage rate per site (or per survey
respondent) for several years. In the 2023 Uptime Institute data center survey, 55% of
operators say they had had an outage in the past three years, which is down from 60% in
2022, 69% in 2021 and 78% in 2020, and extends the gradual downward trajectory.
However, there are multiple caveats. One of these relates to the statistical methodology.
For this year’s annual survey, Uptime changed the survey questions for better accuracy —
and respondents are now asked about outages at the specific facility that they are most
familiar with, rather than the largest site of the data center operator’s organization. This
change may introduce some underlying shift in the data, although our control questions
suggest the effect has been minor.
A second caveat: the uncertain impact of the COVID-19 pandemic and other major
disruptions on business. The current trend of small year-on-year improvements runs
through the turbulent years of the pandemic, which had a significant impact on the data
center sector. The lockdowns associated with COVID-19 led to an initial fall in demand at
most sites, followed by a surge as the world adapted to more online services. Pandemic
and post-pandemic supply chain disruptions and ongoing shortages of some key facility
equipment and IT components then kicked in.
It is difficult to track what the net effect of all these factors has been. For example,
the COVID-19 pandemic led to a fall in business and an uncertain outlook for many
enterprises, which (coupled with conservative management) reduced budgets for
innovation and retrofits, yet lockdowns and contagion controls to halt infections reduced
the number of available on-site staff.

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Cloud and provisioning

Many organizations remain wary of using the public cloud for mission critical applications.
Their primary concern is data security, with concern about infrastructure performance and
resiliency being less significant.

Data security, not infrastructure, blocks cloud adoption

Two-thirds (65%) of respondents to the 2023 Uptime Institute data center survey are not
hosting any mission-critical applications in the public cloud — a high proportion. In the
past, many Uptime members have said that a lack of clarity in hyperscaler data centers’
operations and resiliency had discouraged cloud adoption. Many said they preferred to
operate their own data centers and have greater control. Respondents also believed that
their data centers were less likely to experience outages than public cloud operators, which
have suffered from some much-publicized failures across availability zones and regions.
However, Uptime’s 2023 research suggests that visibility into public cloud operations and
resiliency may not be the main reason for not using the public cloud — the challenge is data
protection. Respondents who did not place mission-critical workloads in the cloud were
asked to identify the reasons: almost two-thirds (64%) cited data security as a barrier to
adoption; with 41% also expressing concerns over regulation and compliance (see Figure
15). Compared with other obstacles, concerns relating to data center operations and
resiliency ranked relatively low — each was selected by 20% of respondents. Only 9% said
a previous negative experience with the public cloud had deterred them from using it again.

Figure 15 Data security and compliance concerns impede adoption

What are the main reasons you do not place mission-critical workloads into public clouds?
Choose no more than three. (n=240)

Data security concerns 64%

Regulation and
compliance concerns
41%

Cost or return
on investment 33%

Data center
operations concerns 20%
Data center architecture /
resiliency concerns 20%
Concerns about corporate,
financial or legal stability 20%
of cloud providers
Lack of suitable cloud
architecture skills 10%
Poor previous public
cloud experience 9%

UPTIME INSTITUTE GLOBAL SURVEY OF IT AND DATA CENTER MANAGERS 2023

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Innovation and impact

Artificial intelligence (AI) is an umbrella term that is used to describe computer software
that is capable of learning from data and improving its performance over time in similar
ways to humans. The technology is typically used to perform tasks such as problem
solving, pattern recognition and natural language processing.
So far, the impact of AI on data center operations has been limited to the dynamic
optimization of power and cooling, anomaly detection, predictive maintenance and other
types of predictive analytics. Case studies that detail successful implementations of AI in
the data center remain rare. Nevertheless, the properties of AI mean that this technology
could be applied to almost every area of data center management and operations.

Perception of AI’s looming influence does not reflect reality

Nearly three-quarters of respondents to the 2023 annual survey believe that AI-based
software tools will eventually reduce data center operations staffing levels — a viewpoint
that Uptime has observed consistently for the past five years (see Figure 20). The number
of respondents who think this will be achieved in the short term has increased in 2023,
in line with more coverage of AI in the mainstream media and greater awareness of
consumer-facing AI models, such as Stable Diffusion and ChatGPT.
The perception of AI’s looming power and influence has not reflected reality, however —
or at least not so far. Back in 2019, 29% of respondents said they believed that AI would
reduce the need for human data center staff in the next five years. Nearly five years later,
there is little evidence of this occurring.

Figure 20 More operators expect AI to lower staffing needs in the near term
Do you
Do youbelieve
believeartificial
artificialintelligence
intelligencewill
willreduce
reduceyour
yourdata
datacenter
centeroperations
operationsstaffing
staffinglevels
levels
inin
thenext
the nextfive
fiveyears?
years?

YES
29% (within the next 5 years) 25%

YES 48%
(but not in the next 5 years
42% – it will take longer)

29% NO
27%

2019 2020 2021 2022 2023

(n=466) (n=435) (n=555) (n=632) (n=752)

UPTIME INSTITUTE GLOBAL SURVEY OF IT AND DATA CENTER MANAGERS 2019-2023

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KEYNOTE REPORT
EXECUTIVE SUMMARY Uptime Institute Global Data Center Survey 2023

Appendix

Survey methodology
and demographics
Uptime Institute’s Global Data Center Survey, now in its 13th year, is conducted annually
online and by email. The 2023 survey was conducted in the first half of the year.
This report focuses on responses from the owners and operators of data centers, including
those responsible for managing infrastructure at the world’s largest IT organizations.
Job titles include senior executive, IT manager, IT operations staff, critical facilities
manager, critical facilities operations staff, design engineer and consultant.

Figure 22 Respondents by location, industry vertical and job function

Company location (n=832)

29%

20%

US & Canada Europe 22%

8% China

6%
Africa 8% 14%
Middle
East Asia-Pacific
(excluding China)
21% Latin America

Verticals (n=637) Job function (n=879)

Colocation / multi-
29% 19%
tenant data centers 23%
Senior executive
Telecommunications 13% Critical facilities
(VP or C-level)
manager
Financial 12%
IT 10% 12% 11%
Critical facilities IT manager
Government 7% operations staff
3% Design and engineering
Software and / 3% Healthcare / pharmaceutical
5%
or cloud services 3% Education 7% 7%
Data center IT operations Design
equipment supplier 4% 2% Retail / wholesale / distribution
staff engineer
2% Insurance
Utilities / energy 4% 1% Transportation
Manufacturing 3% 1% Media 7% 13%
Consultant Other
Other 15%
UPTIME INSTITUTE GLOBAL SURVEY OF IT AND DATA CENTER MANAGERS 2023

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COPYRIGHT 2023
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EXECUTIVE SUMMARY

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