Energy and utilities companies are facing a data deluge that threatens to overwhelm their IT operations and digital transformation efforts.

A new report by Dynatrace reveals that as providers race to meet rising consumer expectations for real-time digital services, their technology environments are becoming more fragmented and difficult to manage, increasing operational risks and stretching resources thin.

According to the report, 81 per cent of energy firms say their IT environments change every minute or less, while cloud-native architectures now span an average of 39 different technologies per application transaction.

This growing complexity has created operational blind spots, with companies managing an average of 10.5 monitoring tools but achieving end-to-end visibility over just nine per cent of their technology stacks.

More than half of chief information officers (CIOs) surveyed admitted they struggle to scale their data storage to keep up with surging metrics and logs.

Traditional log analytics solutions, once relied upon to troubleshoot and optimise software, are no longer adequate.

Only nine per cent of observability data is currently captured for querying and analytics, largely due to the prohibitive cost of high-performance data storage.

As a result, IT teams are forced to decide what data to retain and what to discard, undermining their ability to spot emerging risks and ensure service reliability.

The report stresses the urgent need for automation and artificial intelligence-powered operations (AIOps) to alleviate pressure on stretched DevOps teams and accelerate incident response. CIOs identified dynamic, scalable storage, real-time topology mapping, and AI-driven insights as critical to regaining control.

With 55 per cent of respondents reporting difficulties in attracting and retaining skilled IT talent, adopting advanced observability and automation solutions is fast becoming essential for energy firms determined to keep pace with digital demand while safeguarding operational resilience.