Website Downtime Cost Statistics: What an Outage Actually Costs by Business Size

Cost of Downtime Research — PaidHosting.com

Website Downtime Cost Statistics: What an Outage Actually Costs in 2026

Everyone still cites Gartner’s $5,600-per-minute figure — it comes from a 2014 blog post. We replaced it with current data from Uptime Institute, ITIC, Splunk, New Relic and Siemens, plus company disclosures from real outages, and show how each measure has changed over time.

💰 Enterprise, industry & real outages 📊 Uptime · ITIC · Splunk · New Relic · Siemens 🔄 Updated October 2026

Key Downtime Cost Statistics

Downtime-cost figures vary enormously by source because they measure different things — some are per-hour medians, some are per-incident, some are annual totals for the world’s largest companies. Here are the current headline numbers, each tied to its original source.

$2M/hrmedian cost of a high-impact IT outage — about $33,333 a minuteNew Relic · Observability Forecast 2025
1 in 5data center operators said their most recent major outage cost more than $1 million — for the second year runningUptime Institute · 2026
41%of enterprises say one hour of downtime costs $1 million to over $5 millionITIC · 2024
$300Maverage yearly loss to unplanned outages per Global 2000 company, up from $200M in 2024Splunk · 2024 & 2026
50%of data center operators had an impactful outage in the past three years — down from 74% in 2020Uptime Institute · 2025 survey
$5.4Bestimated direct loss to Fortune 500 companies from the July 2024 CrowdStrike outageParametrix · July 2024
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Why the “$5,600 a minute” figure is everywhere

Gartner’s $5,600-per-minute average comes from a 2014 Gartner blog post by analyst Andrew Lerner, and it has been recycled across the industry ever since. The other figure that still circulates — about $9,000 a minute — is from the Ponemon Institute’s 2016 study for Emerson Network Power, which put the average unplanned data center outage at $8,851 per minute ($740,357 per outage) across 63 U.S. data centers. Both are roughly a decade old. If you see either cited without a date, it’s the same old number; the sections below use 2024–2026 data instead.

Ponemon studyCost per minuteAverage cost per outage
2010$5,617$505,502
2013$7,908$690,204
2016$8,851$740,357

Source: Ponemon Institute / Emerson Network Power (now Vertiv), Cost of Data Center Outages, January 2016. Shown for historical context; Ponemon has not repeated the study since.

How Downtime Costs Have Changed

Uptime Institute has asked data center operators what their most recent significant outage cost since 2019. Fewer operators now report outages at all, but the share of costly outages is well above where it was in 2019.

Uptime Institute reportMost recent outage cost > $100,000Most recent outage cost > $1 million
2019 baseline39%11%
2022 reportOver 60%15%
2023 reportMore than two-thirds25%
2024 report54%16%
2025 report—1 in 5
2026 report57%1 in 5

Sources: Uptime Institute press release on its 2022 Outage Analysis (2019 baseline and 2022 figures); Annual Outage Analysis 2023; Resiliency Survey executive summary 2024; Annual Outage Analysis 2026 (which reports 1 in 5 above $1 million “for the second consecutive year”). “—” means the figure is not published in the material we could access.

Operators reporting an impactful outage in the past three years

Share of data center operators surveyed by Uptime Institute, by survey year.

202074%
202169%
202260%
202355%
202453%
202550%

Source: Uptime Institute, Annual Outage Analysis 2026 (Global Data Center Survey, 494–781 respondents per year).Free to reuse with attribution and a link to paidhosting.com

ITIC surveyOne hour of downtime costs $300,000+One hour costs $1 million to over $5 million
201476% of firms—
201881% of firms—
201986% of firms34% of firms
2024Over 90% of mid-size and large enterprises41% of enterprises

Sources: ITIC Hourly Cost of Downtime surveys (2019 release, which also reports the 2014 and 2018 figures; 2024 report, over 1,000 firms surveyed November 2023 – March 2024). The 2024 survey reports the $300,000 figure for mid-size and large enterprises only.

Cost of Downtime by Company Size

Current, primary-source data is strongest for large companies. For the biggest firms, downtime is now measured in hundreds of millions of dollars a year.

  • Global 2000 companies lose an average of $300 million a year to unplanned outages, and suffer an average 3.4% stock price drop after a single incident.Source: Splunk, The Hidden Costs of Downtime 2026 (survey of 2,000 Global 2000 executives)
  • Two years earlier, the same study put the total at $400 billion a year — about $200 million per company and roughly 9% of profits — including $49 million a year in lost revenue per company.Source: Splunk with Oxford Economics, The Hidden Costs of Downtime, June 2024
  • Mid-size and large enterprises: for over 90%, an hour of downtime costs more than $300,000; for 41% of enterprises it costs $1 million to over $5 million.Source: ITIC 2024 Hourly Cost of Downtime Report
  • Organizations with full-stack observability report a median high-impact outage cost of $1 million per hour, half the $2 million median for those without it.Source: New Relic, Observability Forecast 2025 (1,700+ respondents in 23 countries)
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    What about small businesses?

    We could not find a current, primary-source downtime-cost figure for small businesses — the per-minute ranges for small businesses that circulate online don’t trace back to a published study we could find. For a small site, the most reliable estimate is your own: take the revenue your site brings in per hour, multiply by the hours you could be down, and add the cost of fixing the problem and any customers you might lose. Our downtime cost calculator does this for you.

    Cost of Downtime by Industry

    Industries with high revenue per minute or continuous production lines see the highest downtime costs.

    IndustryCost per HourSource
    Automotive manufacturing (large plant)$2.3MSiemens, True Cost of Downtime 2024
    Financial services & insurance (high-impact outage, median)$2.2MNew Relic, Observability Forecast 2024
    Telecommunications (high-impact outage, median)$2MNew Relic, Observability Forecast 2025
    Media & entertainment (high-impact outage, median)$2MNew Relic, Observability Forecast 2025
    IT organizations (high-impact outage, median)$1.6MNew Relic, Observability Forecast 2025
    Retail & ecommerce (high-impact outage, median)$1MNew Relic, Observability Forecast 2025
    Fast-moving consumer goods (FMCG) manufacturing$36,000Siemens, True Cost of Downtime 2024

    Siemens figures cover lost production in large industrial plants (data April 2019 – March 2023); New Relic figures are medians for high-business-impact IT outages. Siemens also found that unplanned downtime costs Fortune Global 500 companies about $1.4 trillion a year — 11% of their revenues — and that an average large plant loses 27 hours a month to unplanned downtime, down from 39 hours in 2019.

    Real-World Examples

  • Delta Air Lines, August 2016: a systems outage cut Delta’s September-quarter pre-tax income by an estimated $150 million, including $100 million of lost revenue.Source: Delta Air Lines, September quarter 2016 results (13 October 2016)
  • CrowdStrike outage, July 2024 (Delta): about 7,000 Delta flight cancellations over five days, a direct revenue impact of about $380 million and $170 million of extra non-fuel expense.Source: Delta Air Lines Form 8-K (8 August 2024) and September quarter 2024 results
  • CrowdStrike outage, July 2024 (Fortune 500): an estimated $5.4 billion direct loss across the 125 Fortune 500 companies affected (excluding Microsoft), led by healthcare ($1.94 billion) and banking ($1.15 billion); insurers were expected to cover only $0.54–1.08 billion.Source: Parametrix Insurance, 24 July 2024
  • Estimated cost of the July 2024 CrowdStrike outage, by industry

    Estimated direct losses to affected Fortune 500 companies (excluding Microsoft).

    Healthcare$1.94B
    Banking$1.15B
    Airlines~$0.86B

    Source: Parametrix Insurance, “CrowdStrike to Cost Fortune 500 $5.4b”, 24 July 2024.Free to reuse with attribution and a link to paidhosting.com

    For a look at how often major cloud infrastructure providers themselves go down — and how long those outages tend to last — see our cloud provider outage statistics page.

    What Causes the Outages

    Knowing where outages come from is the first step to avoiding their cost.

    Data center outages

    • Power was the leading cause of impactful data center outages in 2025, at 45% (down from 54% in 2024)
    • 92% of operators say human error contributed at least in a minor way to their most recent impactful outage
    • 87% say their most recent impactful outage could have been avoided with better management, processes or configuration

    Global 2000 downtime

    • 43% of downtime incidents are network- or IT-environment related
    • 32% are driven by cybersecurity incidents
    • 24% stem from application or infrastructure failures

    Sources: Uptime Institute, Annual Outage Analysis 2026; Splunk, The Hidden Costs of Downtime 2026.


    Sources & Methodology

    Every figure on this page comes from the organization that collected it: surveys by Uptime Institute, ITIC, Splunk (with Oxford Economics) and New Relic; Siemens’ production-loss analysis; company filings and results; and Parametrix’s insured-loss estimate. Downtime-cost studies use different methods — self-reported surveys, production data and modeled estimates — so figures from different sources measure different things and should not be combined. Older figures (Gartner 2014, Ponemon 2016) are shown only for context. This page is reviewed and updated as newer research is published.

    • Uptime Institute — Annual Outage Analysis 2026 and press release (May 2026); Annual Outage Analysis 2023; Resiliency Survey executive summary 2024; 2022 Outage Analysis press release
    • ITIC — 2024 Hourly Cost of Downtime Report; 2019 Hourly Cost of Downtime survey
    • Splunk — The Hidden Costs of Downtime 2026; The Hidden Costs of Downtime (with Oxford Economics), June 2024
    • New Relic — Observability Forecast 2025 (September 2025); financial services report (April 2025)
    • Siemens — The True Cost of Downtime 2024
    • Ponemon Institute / Emerson Network Power — Cost of Data Center Outages, 2016
    • Delta Air Lines — September quarter 2016 results; Form 8-K, 8 August 2024; September quarter 2024 results
    • Parametrix Insurance — CrowdStrike outage loss estimate, 24 July 2024
    • Gartner — “The Cost of Downtime” blog post by Andrew Lerner, 2014 (historical context only)

    Cite this analysis

    Paid Hosting. Website Downtime Cost Statistics: What an Outage Actually Costs in 2026. October 2026. Compiled from Uptime Institute, ITIC, Splunk, New Relic, Siemens, Parametrix and Delta Air Lines research and disclosures.
    https://www.paidhosting.com/downtime-cost-statistics/

    Findings on this page may be reproduced with attribution and a link back to this page. Press and data inquiries: [email protected]