Shift to Third-Party Data Centers Intensifies with Rising Power Demands and Costs
August 4, 2026
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
