Market challenges rise by over a third as data centres battle mounting pressure
Annual research from Keysource uncovers operational transitions , existing challenges and future opportunities for IT and data sectors .
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 , twothirds ( 66 %) of data centres expect their infrastructure to change over the next four years .
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 ,” said Rich Clifford , Director of Solutions , 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 decisionmakers 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 .
“ The disparity in progress – whether perceived or actual – alongside the wide range of practices being adopted by different organisations , paints a picture of fragmentation ,” Healy said . “ 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 .” �
INTELLIGENT OPERATIONS
“ The increased power requirements of widespread AI use are catalysing a focus on heightened power capability , speed and resilience for data centres ,” said Jon Healy , COO , Keysource . “ 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 ,” added Healy .
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