Back to Blog

What causes ATS to fail?

AI Business Process Automation > AI Document Processing & Management17 min read

What causes ATS to fail?

Key Facts

  • 88.5% of electronic equipment failures are caused by voltage transients, according to a two-year study across 200 U.S. locations.
  • A typical building experiences 150 voltage transients per month, mostly from internal equipment switching or weather events.
  • An ATS can switch to backup power within 50 milliseconds, minimizing downtime during utility outages.
  • A single data center ATS failure in 2018 caused over USD 5 million in losses due to extended downtime and reputational damage.
  • After installing robust surge protection, a utility managing 1,200+ substations reported zero ATS failures in six months.
  • Generators running more than 30 minutes after power restoration signal an ATS control fault, per GenServe Inc. technicians.
  • Global economic losses from power interruptions total billions of dollars annually, with ATS failures contributing to cascading outages.

Introduction: The Hidden Risks of ATS Failure

When the lights go out, every second counts. An Automatic Transfer Switch (ATS) is the silent guardian of critical operations, ensuring seamless power continuity in hospitals, data centers, and industrial facilities. Yet, despite its vital role, ATS failure remains a common and costly risk—often due to preventable causes.

These systems are designed to switch to backup power within 50 milliseconds of a utility outage, minimizing downtime and protecting sensitive equipment. But when an ATS fails, the consequences can be severe. In 2018, one data center’s ATS malfunction led to over USD 5 million in losses and lasting reputational damage, according to YR Oele.

Key factors contributing to ATS failures include:

  • Environmental exposure to moisture, dust, and extreme temperatures
  • Voltage transients, which cause 88.5% of electronic equipment failures (per Maxivolt)
  • Mechanical wear from infrequent use or lack of testing
  • Poor maintenance practices, including loose connections and corrosion
  • Inadequate surge protection on power sources

A typical commercial building faces 150 voltage transients per month, mostly from internal equipment switching or weather events. These surges degrade control boards and power supplies over time, leading to latent failures that only surface during emergencies.

In one real-world example, an electric utility managing over 1,200 substations experienced repeated ATS control board failures. After retrofitting with robust surge protective devices (SPDs), they achieved zero failures in six months—a clear win for proactive protection, as reported by Maxivolt.

The lesson is clear: reliability doesn’t happen by accident. Like any critical system, an ATS requires regular inspection, environmental controls, and proper integration with protective technologies.

While these insights focus on electrical ATS systems, the underlying principle applies universally—systemic resilience depends on proactive design and maintenance, not just reactive fixes.

Now, let’s examine the most common technical causes behind these preventable failures.

Core Challenges: Why ATS Systems Break Down

Core Challenges: Why ATS Systems Break Down

Automatic Transfer Switches (ATS) are critical lifelines in emergency power systems—yet they fail more often than they should. These breakdowns aren’t random; they stem from predictable technical and operational weaknesses that compromise reliability when it matters most.

Environmental stressors are a leading cause of ATS failure. Exposure to moisture, dust, and extreme temperatures degrades internal components over time, leading to short circuits or mechanical malfunctions. For instance, humidity can corrode electrical contacts, while dust buildup insulates heat-sensitive parts, accelerating wear.

Electrical transients—brief, high-voltage spikes in power supply—are another major threat. A typical building experiences an average of 150 voltage transients per month, mostly from lightning strikes or inductive load switching. These surges overwhelm sensitive control boards, causing latent damage or immediate failure.

According to Maxivolt's technical analysis, voltage transients were responsible for 88.5% of computer equipment failures in a two-year study across 200 U.S. locations. ATS control systems, packed with similar electronics, face identical risks.

Common electrical stressors include: - Lightning-induced surges - Switching of large inductive loads (e.g., motors) - Utility grid fluctuations - Poor grounding or wiring faults

Mechanical wear is equally damaging. ATS units rely on physical switching mechanisms that degrade with age and infrequent use. Contacts erode, springs weaken, and moving parts seize—especially when units sit idle for months. Without routine operation, these components fail when called upon during outages.

Human factors compound these issues. Improper installation, skipped maintenance, and untrained personnel increase failure risk. Technicians from GenServe Inc. emphasize that only certified professionals should handle ATS systems due to the risk of severe injury or death.

One telling sign of ATS malfunction? Generators running more than 30 minutes after utility power returns—a clear indicator the switch failed to transfer back properly. This not only wastes fuel but signals deeper wiring or control issues.

A 2018 data center outage caused by an ATS transfer failure led to over USD 5 million in losses, including downtime and reputational damage, as reported by YR Oele. Such cases underscore how quickly technical flaws escalate into business crises.

Consider a U.S. electric utility managing over 1,200 substations. Four experienced repeated ATS control board failures within a year. After retrofitting with robust surge protection devices (SPDs), they recorded zero failures in the next six months—a result highlighted in Maxivolt’s case study.

This proves that while ATS systems are vulnerable, their failures are largely preventable with the right safeguards.

Now, let’s examine how proactive maintenance and modern protection strategies can dramatically improve ATS reliability.

Solution & Benefits: Preventing Failure with Proactive Measures

Solution & Benefits: Preventing Failure with Proactive Measures

ATS failures don’t happen without warning—they’re often the result of overlooked risks and reactive maintenance. The good news? Most failures are entirely preventable with the right safeguards in place.

Proactive strategies like surge protection, preventative maintenance, and power quality monitoring significantly reduce the risk of unexpected downtime. These measures protect not only the ATS but the entire backup power ecosystem, ensuring seamless operation when it matters most.

According to Maxivolt, a typical building experiences 150 voltage transients per month—many caused by internal equipment switching or weather events. These surges degrade sensitive control boards over time, leading to latent failures that can cripple emergency responses.

Key protective actions include: - Installing surge protective devices (SPDs) on both utility and generator power lines - Conducting regular inspections for corrosion, loose connections, and wear - Implementing environmental controls like dehumidifiers to prevent moisture damage - Performing monthly ATS transfer tests to verify operational readiness - Monitoring battery health and charge levels in control circuits

One electric utility managing over 1,200 substations saw repeated control board failures—until they retrofitted their ATS units with robust SPDs. As reported by Maxivolt, after switching to higher-performance models, they achieved zero failures in six months—eliminating costly repairs and downtime.

This case underscores a broader truth: reactive fixes are no match for systemic protection. As YR Oele notes, global economic losses from power interruptions amount to billions of dollars annually, with ATS failures contributing significantly to cascading outages in critical facilities.

ATS systems that fail to transfer within 50 milliseconds during a power loss risk prolonged downtime. Worse, if a generator continues running more than 30 minutes after utility restoration, it’s a clear sign of an ATS control fault—often rooted in poor maintenance or undetected electrical damage.

Preventative maintenance isn’t just about avoiding failure—it’s about ensuring reliability, safety, and continuity. Technicians from GenServe Inc. emphasize that only certified professionals should handle ATS servicing due to the high risks of electrocution and system misconfiguration.

When combined, surge protection, disciplined maintenance, and real-time monitoring form a defense-in-depth strategy that transforms ATS reliability.

Next, we’ll explore how modern technology—from smart sensors to predictive analytics—can take these preventive measures even further.

Implementation: Building a Reliable ATS Maintenance Plan

Implementation: Building a Reliable ATS Maintenance Plan

An Automatic Transfer Switch (ATS) is only as reliable as its maintenance plan. Without proactive care, even the most advanced systems can fail when needed most.

Preventable issues like dust buildup, loose connections, and voltage transients are leading causes of ATS failure. Regular, certified maintenance is critical to ensure seamless operation during power disruptions.

Key components of a robust ATS maintenance strategy include:

  • Scheduled inspections by certified technicians to identify wear and environmental damage
  • Surge protection on both utility and generator sides to guard against voltage transients
  • Load testing to verify switching performance under real-world conditions
  • Battery and connection checks to prevent startup failures
  • Environmental controls like dehumidifiers to reduce corrosion risk

According to GenServe Inc., infrequent testing and environmental exposure are among the top five causes of ATS faults. Moisture and dust can lead to short circuits or control board failures—especially in high-humidity or industrial environments.

A typical building experiences 150 voltage transients per month, primarily from internal equipment switching or weather events, as noted by Maxivolt. These spikes can degrade sensitive electronics over time, even if immediate failure doesn’t occur.

In a documented case, an electric utility managing over 1,200 substations saw repeated control board failures. After retrofitting with robust surge protective devices (SPDs), they reported zero failures in six months—a clear ROI from targeted protection, according to Maxivolt’s analysis.

One real-world example involves a data center where an ATS failure in 2018 caused over USD 5 million in losses due to extended downtime. The root cause? A combination of undetected control errors and inadequate testing protocols, as highlighted by YR Oele.

Routine testing is non-negotiable. Generators typically run 15–20 minutes after power restoration for cooldown. Operation beyond 30 minutes signals an ATS fault—often due to failed sensing or switching mechanisms, per GenServe Inc..

To build a sustainable maintenance plan:

  • Conduct monthly operational tests and quarterly load tests
  • Inspect and tighten electrical connections regularly
  • Monitor battery health and replace proactively
  • Install SPDs with short lead conductors on both power sources
  • Train personnel on emergency response and diagnostics

Power quality monitoring systems can provide early warnings of voltage fluctuations or harmonic distortions—helping prevent cascading failures in interconnected systems.

Global economic losses from power interruptions total billions annually, underscoring the need for resilient infrastructure, according to YR Oele.

A well-maintained ATS can switch to backup power in as little as 50 milliseconds, minimizing disruption. But this reliability depends on consistent upkeep and modern protection strategies.

Next, we’ll explore how integrating smart monitoring and predictive analytics can transform reactive maintenance into a proactive defense against system failure.

Conclusion: Ensuring Uptime Through Smart ATS Management

Conclusion: Ensuring Uptime Through Smart ATS Management

Automatic Transfer Switch (ATS) failures are not inevitable—they are largely preventable with disciplined maintenance and proactive protection strategies. Despite their critical role in maintaining power continuity, many organizations overlook the environmental, electrical, and mechanical vulnerabilities that compromise ATS performance.

The cost of neglect is high.
- A single data center ATS failure in 2018 caused over USD 5 million in losses due to service disruption and reputational damage, according to YR Oele.
- Global economic losses from power interruptions total billions of dollars annually, underscoring the systemic risk of inadequate backup systems.

Common failure points include:

  • Transient voltage events, which occur up to 150 times per month in a typical building and are responsible for 88.5% of electronic equipment failures, as found in a two-year study cited by Maxivolt.
  • Environmental exposure such as moisture and dust, leading to short circuits and corrosion.
  • Mechanical wear from infrequent testing or poor maintenance, resulting in delayed or failed switchover.
  • Loose connections and battery degradation, which impair responsiveness during outages.
  • Control board failures due to inadequate surge protection on both utility and generator sides.

One utility company managing over 1,200 substations experienced repeated control board failures—until it retrofitted its ATS units with robust surge protective devices (SPDs). After switching to higher-quality SPDs, it reported zero failures and zero maintenance costs over the next six months, according to Maxivolt’s case study.

This real-world example proves that strategic investments in protection technology pay off. It also highlights a broader truth: uptime depends not just on having an ATS, but on how well it's maintained and safeguarded.

Key preventive actions include:

  • Scheduling regular inspections by certified technicians to check connections, clean components, and test operations.
  • Installing surge protection on both power sources to defend against transient voltage.
  • Conducting monthly operational tests to ensure the ATS switches within 50 milliseconds, as recommended by GenServe Inc..
  • Monitoring power quality and environmental conditions like humidity and temperature.
  • Replacing aging components before failure occurs, especially batteries and control boards.

Extended generator runtime—beyond the normal 15–20 minute cooldown—can signal an ATS fault, according to GenServe Inc.. This subtle indicator underscores the need for continuous monitoring and rapid diagnostics.

Ultimately, reliability stems from ownership, not just installation. Organizations that treat their ATS as a mission-critical system—not a set-and-forget device—are far more likely to avoid catastrophic downtime.

Next, we’ll explore how businesses can audit their current ATS setups and implement tailored protection plans to ensure uninterrupted operations.

Frequently Asked Questions

What are the most common causes of ATS failure in critical facilities?
The most common causes of ATS failure include voltage transients (which cause 88.5% of electronic equipment failures), environmental exposure to moisture and dust, mechanical wear from infrequent use, loose electrical connections, and inadequate surge protection. These factors can lead to control board failures or delayed switchover during outages.
How do voltage transients contribute to ATS failures?
Voltage transients—short, high-voltage spikes—occur up to 150 times per month in a typical building due to internal equipment switching or weather events. According to Maxivolt, these surges degrade ATS control boards over time and were responsible for 88.5% of electronic equipment failures in a two-year study.
Can poor maintenance really lead to ATS failure?
Yes, poor maintenance is a leading cause of ATS failure. Infrequent testing, corrosion, loose connections, and dust buildup can impair switching performance. GenServe Inc. technicians note that only certified professionals should perform maintenance due to the risk of injury and system misconfiguration.
How can surge protection prevent ATS failures?
Installing surge protective devices (SPDs) on both utility and generator power lines guards against voltage transients that damage sensitive electronics. One utility company eliminated ATS control board failures for six months after retrofitting robust SPDs, as reported by Maxivolt.
What’s a real-world consequence of an ATS failure?
In 2018, a data center ATS failure caused several hours of downtime, resulting in over USD 5 million in losses and reputational damage, according to YR Oele. Such failures highlight the financial and operational risks of unreliable power transfer systems.
How often should an ATS be tested to avoid failure?
Monthly operational tests are recommended to verify the ATS switches within 50 milliseconds of a power loss. Extended generator runtime beyond 30 minutes after utility restoration signals a potential ATS fault, indicating failed sensing or switching mechanisms, per GenServe Inc.

Power Your Hiring Like Critical Infrastructure

Just as an Automatic Transfer Switch (ATS) safeguards mission-critical operations from power failure, your hiring infrastructure must withstand the shocks of inefficiency, poor integration, and system brittleness. Yet, like an unprotected ATS succumbing to voltage transients or mechanical wear, off-the-shelf ATS tools fail when they lack customization, robust integrations, and intelligent logic—leading to missed talent, compliance risks, and wasted time. The root causes of failure aren’t just technical; they stem from rigid workflows that can’t adapt to the unique demands of industries like healthcare, retail, or SaaS, where data privacy (GDPR, HIPAA, SOX) and operational speed are non-negotiable. At AIQ Labs, we build AI-powered recruiting systems that don’t just react—they anticipate. With deep two-way API integrations and in-house platforms like Agentive AIQ and Briefsy, we deliver production-ready solutions such as intelligent resume screening, AI-driven lead scoring, and automated interview scheduling trained on your culture and role requirements. Don’t patch a failing system—replace it with one designed to last. Schedule a free AI audit today and discover how a custom AI solution can transform your hiring from a bottleneck into a strategic advantage.

Join The Newsletter

Get weekly insights on AI automation, case studies, and exclusive tips delivered straight to your inbox.

Ready to Stop Playing Subscription Whack-a-Mole?

Let's build an AI system that actually works for your business—not the other way around.

P.S. Still skeptical? Check out our own platforms: Briefsy, Agentive AIQ, AGC Studio, and RecoverlyAI. We build what we preach.