Shift to Third-Party Data Centers Intensifies with Rising Power Demands and Costs

August 4, 2026
Shift to Third-Party Data Centers Intensifies with Rising Power Demands and Costs
  • The latest Uptime Institute Global Data Center Survey shows enterprise IT workloads shifting from corporate-owned facilities to third-party data centers, which now host 46% of workloads while in-house facilities account for 44%.

  • Without counting a few ultra-high-density facilities, typical rack power density sits around 7.8 kW, up from 7.5 kW in 2025, signaling continued increases in power demands across the industry.

  • This move to off-premises IT infrastructure is driving higher power consumption pressures and rising electricity costs across data center operating budgets worldwide.

  • Respondents are predominantly from North America and Europe, with about 10% relying on smaller IT rooms or server cabinets rather than dedicated facilities.

  • Average rack power density has surpassed 11 kW, fueled by the deployment of higher-powered hardware and marking an unprecedented level of power usage in data centers.

  • Projections indicate third-party data centers will continue to grow, reaching about 48% of workloads by 2028 and further reducing dependence on self-owned facilities.

Summary based on 1 source


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