Tier standards for data centers are defined by levels of availability and downtime per year. Tier I has the lowest availability at 99.671% with 28.8 hours of annual downtime and no redundancy. Tier II has 99.741% availability and 22 hours of downtime with redundant components. Tier III provides 99.982% availability and 1.6 hours of downtime with dual power and no single points of failure. Tier IV is the highest tier with 99.995% availability and 0.8 hours of downtime, offering fully fault tolerant systems. While a higher tier ensures greater reliability, organizations should select the tier that matches their budget and criticality of the data and applications.