By Andrew Gordon, Managing Director UK&I at Eaton
A recent power failure in London forced several lines of the London Underground network to grind to a halt for hours. A few weeks prior, a nationwide blackout in Iberia paralysed public transport, ATMs, and even traffic lights across Spain and Portugal. The reality is these events are no longer a rarity – they’re a warning sign that widespread power disruption is becoming increasingly frequent. In the US alone, power outages have risen by 64 per cent over the past 15 years.
Power cuts – interruptions to the power supply that can last any length of time from a split second to several hours – can be immensely disruptive to businesses and significantly impact the broader economy. Recent data from the US shows that the average cost of a single hour of downtime exceeds $300,000 for more than 90 per cent of mid-size and large companies. In fact, four in 10 large enterprises report hourly downtime costs ranging from $1 million to over $5 million.
But what’s behind the rise in power cuts and how can businesses respond to minimise risks to their business?
Why are power cuts on the rise?
While power outages can happen for many reasons, a major cause behind their rise is ageing infrastructure. Over time, parts of the electrical grid – like wires and transformers – wear out or become damaged by weather, making the system more likely to fail, especially during high demand or stress. A single fault can quickly spread, causing large-scale blackouts.
Regular maintenance and secure access to manage IT infrastructure are essential to prevent these failures. However, limited funding often leads to delayed upkeep, allowing problems to go unnoticed and increasing the risk of unexpected, widespread outages.
At the same time, attacks on electrical infrastructure have surged. The International Energy Agency warned cyberattacks on utilities more than doubled between 2020 and 2022, while physical attacks rose by 70 per cent during the same period – both with the potential to knock out power supplies.
However, most blackouts are caused by extreme weather. High winds can bring down trees and power lines, while heavy rain and snow can flood substations. The frequency of these weather-related events is increasing, with twice as many reported between 2014 and 2023 compared to the decade before, causing power cuts to become more frequent.
Growing demand for power
The global energy crisis exacerbates these risks. Geopolitical events and economic recoveries, after periods of slowdown, are prompting demand to outstrip supply. The imbalances that follow can lead to voltage drops and frequency fluctuations, which may trigger protective systems to shut down portions of the grid, ultimately resulting in power cuts.
Energy demands at their peak can also place immense stress on electrical grids, raising the risk of power cuts too. The widespread adoption of artificial intelligence (AI) has exasperated this, due to the substantial computational power required to train and run AI models. What’s more, as the demand for AI grows so does the need for new data centres which place further demands on grids which increase the strain.
How can businesses prepare?
With the right power management technology businesses can maintain continuity even during power cuts. Integrating IoT technology, for instance, allows real-time monitoring and control of power quality. This capability enables proactive maintenance and quick responses to power disturbances, minimising downtime and reducing associated costs.
Out-of-Band management, another tool in a well-equipped arsenal, enables system administrators to access network infrastructure without using an IP connection, ensuring they can still perform basic administration tasks like rebooting a router even when the network is down due to an outage. IoT-enabled power quality equipment also provide valuable analytics that helps organisations optimise their energy usage and enhance their overall power management.
Another recent development is the implementation of smart grids designed to improve the reliability and efficiency of electricity distribution. These smart grids incorporate advanced power quality equipment that can dynamically respond to power demand and supply changes. Their ability to identify and isolate faults, reroute power when needed, and balance loads helps ensure a stable and high-quality power supply.
Time to act
Whether due to ageing infrastructure, rising demand for power, or extreme weather, the number of power cuts continues to grow. Today, organisations cannot afford to leave their electrical equipment – and the operations and processes that depend on it – vulnerable to the risk of downtime caused by outages.
Instead, organisations should invest in effective power quality solutions, along with a robust Out-of-Band management strategy, to enhance access and control of their IT infrastructure, whether it’s located in a data centre or at the network edge.
