Fire safety experts warn that rising AI workloads, hotter servers, lithium-ion batteries, and ageing UK data centres are increasing fire risks that could double the cost of future outages. Brian Michie of System Building Services says fires can shut facilities for days, not hours, with downtime exceeding £240,000 per hour, urging stronger fire prevention and monitoring during outages, industry-wide action.
As global businesses grow more dependent on cloud platforms, AI infrastructure, and high-density data centres, a new warning highlights an often-overlooked threat: fire. Following a series of major digital disruptions in 2025, industry experts caution that physical fire incidents inside data centres could make future shutdowns significantly longer and far more expensive than software-related outages.
Brian Michie, Managing Director of System Building Services, a UK specialist in passive fire protection, explains that rising temperatures, lithium-ion battery systems, and ageing infrastructure are creating dangerous conditions inside many facilities. According to Michie, fire risks are now on par with cyber and software failures when it comes to operational resilience.
Digital Outages Expose Deeper Infrastructure Risks
The past year has seen some of the most disruptive digital outages in recent memory. In 2025, Cloudflare’s global crash affected millions of websites, AWS experienced widespread service failures across Europe and the US east coast, and ChatGPT became temporarily inaccessible as infrastructure struggled under rising AI demand. For organisations reliant on these platforms, the financial and operational impact was severe.
While these incidents were primarily driven by software or network failures, Brian warns that physical risks inside data centres could turn similar future disruptions into prolonged shutdowns lasting days or even weeks.
“Data centres are running hotter and denser than ever before,” says Brian. “When you combine that with ageing infrastructure and lithium-ion battery systems, you’re creating conditions where a fire could shut down entire facilities for days, not hours. That turns an expensive outage into a catastrophic one.”
AI Workloads Are Driving Higher Fire Risk
One of the main contributors to rising fire risk is the rapid growth of AI workloads. AI training and inference require far more power than traditional cloud computing, leading to a sharp increase in server heat output.
Average rack densities have risen from around 8–10 kilowatts a decade ago to 30–50 kilowatts per rack in 2025, with some AI training clusters exceeding 100 kilowatts. These dense, high-temperature environments place additional strain on cooling systems and significantly increase ignition risk.
“When you’re running racks at 50 kW or higher, you’re dealing with temperatures that traditional cooling systems weren’t designed for,” Brian explains. “If cooling fails, even briefly, components can overheat rapidly, and once ignition occurs in these dense configurations, it spreads faster than older, more spaced-out setups.”
Lithium-Ion Batteries Add New Complexity
To cope with fluctuating power demands from AI systems, data centre operators increasingly rely on lithium-ion battery energy storage systems. While these systems improve efficiency and resilience, they introduce additional fire hazards.
Lithium-ion batteries are vulnerable to thermal runaway if cooling is inadequate or if cells are damaged. Several near-miss incidents reported in 2025 involved battery rooms overheating due to poor ventilation.
“Lithium-ion systems are excellent for managing power fluctuations, but they require constant monitoring,” says Brian. “A thermal event in a battery room can escalate quickly, and suppression becomes complicated because water-based systems can make things worse.”
Ageing UK Data Centres Face Growing Pressure
Fire risks are further amplified by the age of much of the UK’s data centre infrastructure. Analysts estimate that more than 35% of the UK data centre footprint is over 15 years old and predates current fire safety standards.
These facilities were originally designed for far lower power densities and are now being pushed to accommodate modern AI and cloud workloads. Limited downtime for upgrades and maintenance increases the likelihood that outdated cabling, electrical panels, and fire suppression systems operate beyond their intended safety margins.
“Older cabling, electrical panels, and fire suppression systems weren’t designed for today’s loads,” Brian notes. “When you combine outdated infrastructure with modern AI workloads, you’re asking these facilities to operate beyond their original safety margins.”
Hyperscale Expansion Increases Operational Strain
Global expansion of hyperscale data centres adds another layer of risk. Hyperscale operators now account for 44% of global data centre capacity, with 1,189 large facilities recorded worldwide by the end of the first quarter of 2025.
This rapid growth has intensified pressure on electrical grids and encouraged operators to maximise capacity in existing buildings. In some cases, commercial deadlines and demand growth have delayed or bypassed planned safety upgrades, increasing exposure to fire-related incidents.
Fire-Driven Outages Multiply Financial Losses
The financial impact of a fire inside a data centre far exceeds that of a typical software outage. While many digital disruptions last only a few hours, fire-related shutdowns often extend for days or weeks due to structural assessments, equipment replacement, and regulatory inspections.
For mid-size and large enterprises, a single hour of downtime now costs more than £240,000. When fires affect entire racks or data halls, losses escalate rapidly through halted transactions, blocked websites, disrupted logistics, and missed financial deadlines across multiple industries.
“Software outages are expensive, but they’re usually fixable within hours,” says Brian. “A fire changes the equation completely. Physical damage means you’re looking at procurement delays, installation timelines, and regulatory sign-offs, all while your clients are offline. The financial losses compound every day.”
Beyond immediate revenue loss, businesses also face reputational damage, regulatory penalties, potential legal claims, and prolonged insurance processes. Emergency repairs and customer compensation often need to be funded long before claims are settled.
Practical Fire Safety Guidance During Outages
Brian stresses that organisations should treat fire risk as a core part of outage planning, not an afterthought. During major disruptions, especially when systems operate on backup power or redistributed loads, physical monitoring becomes critical.
“When a major outage hits, businesses need to understand that fire risks at the affected data centre can prolong downtime significantly. If you’re experiencing an outage, contact your provider to confirm their fire suppression and cooling systems are functioning properly, especially if they’re running on backup power or redistributing loads.”
He also highlights risks within on-premise server rooms, where backup systems often operate under higher thermal stress.
“For companies with on-premise server rooms, an outage often means switching to backup systems, which run hotter and under more stress. Monitor your own facilities closely during these periods. Check that cooling systems are working, increase fire detection sensitivity if possible, and don’t ignore temperature warnings just because you’re focused on keeping services running.”
“The worst outcome is compounding a cloud outage with a fire incident in your own backup infrastructure. Review your fire safety protocols now, before an outage occurs, so your team knows exactly what to monitor and when to escalate concerns during high-stress situations.”
About System Building Services
System Building Services Limited (SBS Limited) is a UK-based specialist in passive fire protection, established in 2012 by a team of experienced industry professionals. Operating nationwide with offices in London, Essex, and Yorkshire, the company delivers fire safety solutions including fire stopping, fire doors, cavity barriers, and structural steel encasement.
SBS serves sectors such as retail, healthcare, education, transportation, and heritage restoration. The company reports strong growth since inception and has achieved key safety milestones, including 300,000 man-hours without a Lost Time Incident by 2017. Through long-term partnerships with construction and civil engineering firms, SBS continues to support fire safety compliance across the UK.
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