Market challenges rise by over a third as data centres battle mounting pressure

Nine in 10 (88%) UK data centres face increasing challenges due to growing market pressure, a 37% increase on last year’s report. That’s according to an independent Censuswide study commissioned by data centre solution provider Keysource for the seventh annual iteration of its ‘State of the Industry’ report.

More than 200 UK senior decision-makers within IT and data centre sectors were polled, and the results were compared with findings from previous years.

The relentless demand for faster delivery leaves data centres battling with greater risk (50%), poorer quality (29%) and increased costs (33%) in day-to-day operations. Under this pressure, over three-quarters (78%) of managers admit being required to overestimate their capacity, contributing to unnecessary wastage. Adding to the pressure, two thirds (66%) of data centres expect their infrastructure to change over the next four years.

“The increased power requirements of widespread AI use are catalysing a focus on heightened power capability, speed, and resilience for data centres. The dynamic of data centres overestimating capacity, while unsurprising given the high demand, is resulting in costly waste and needs addressing. Data centre decision makers must take advantage of innovative optimisation techniques, from location, initial build or stack configuration through to more effective cooling methods. The opportunity is there for those seeking more accurate capacity estimations and the efficiency this brings” stated Jon Healy, COO at Keysource.

Alongside market challenges, 40% of respondents affirm they do not possess the necessary skills required for modern demand, with four in 10 reporting a lack of available talent as the most significant blocker to solving the current skills gap.

“The IT and Data sector depends heavily on a skilled, mature workforce, and so it faces age-related biases that affect recruitment from both younger and older generations simultaneously”, adds Rich Clifford, Director of Solutions at Keysource. “As the skills gap shows no sign of slowing, and future demands threaten to widen it further, the sector must recognise the value of tapping into talent across all age groups. Failing to invest in younger talent or to upskill older generations, impacts the accessibility to talent, drives hiring competition, and perpetuates the reliance on outsourcing.”

Financial decisions toward climate positive progress remain divisive. While over half (55%) of data centre and IT teams have access to separate ‘green’ funds - up from 50% in 2023 - 40% of organisations still do not separate their budgets.

Sustainability remains a leading factor on the sector’s agenda. The industry’s drive towards enhanced sustainability is closely aligned with regulatory reporting under the Energy Efficiency Directive (EED).

Over three quarters (78%) of decision-makers believe they have the necessary data and tools to meet these reporting requirements. However, while many organisations feel prepared to meet their targets, only 40% rate their strategies as fit for purpose. When it comes to net-zero investment,

Jon Healy concludes, “The disparity in progress - whether perceived or actual – alongside the wide range of practices being adopted by different organisations, paints a picture of fragmentation. While an optimistic outlook is a strong indicator of net-zero’s rising prioritisation, also evidenced by increasing rates of dedicated green funds, there is a need for greater standardisation across the sector. Data centres must move quickly to provide concrete evidence of sustainability progress, unifying efforts to invest in the innovations that can provide the most immediate impact”.