diff --git a/src/observability.rs b/src/observability.rs
index f2503f61..6b5330ab 100644
--- a/src/observability.rs
+++ b/src/observability.rs
@@ -290,6 +290,9 @@ pub(crate) struct Metrics {
     /// Number of entries in an
     /// [`OnDemandHashMap`](crate::utils::on_demand_hashmap::OnDemandHashMap)
     on_demand_hashmap_size: opentelemetry::metrics::Gauge<u64>,
+
+    /// Number of known remote servers in each state (online or offline)
+    remote_server_count: opentelemetry::metrics::Gauge<u64>,
 }
 
 impl Metrics {
@@ -345,11 +348,17 @@ impl Metrics {
             .with_description("Number of entries in OnDemandHashMap")
             .init();
 
+        let remote_server_count = meter
+            .u64_gauge("remote_server_count")
+            .with_description("Number of known remote servers")
+            .init();
+
         Metrics {
             otel_state: (registry, provider),
             http_requests_histogram,
             lookup,
             on_demand_hashmap_size,
+            remote_server_count,
         }
     }
 
@@ -384,6 +393,18 @@ impl Metrics {
             &[KeyValue::new("name", name)],
         );
     }
+
+    /// Record number of remote servers marked online or offline.
+    pub(crate) fn record_remote_server_count(
+        &self,
+        online_count: u64,
+        offline_count: u64,
+    ) {
+        self.remote_server_count
+            .record(online_count, &[KeyValue::new("state", "online")]);
+        self.remote_server_count
+            .record(offline_count, &[KeyValue::new("state", "offline")]);
+    }
 }
 
 /// Track HTTP metrics by converting this into an [`axum`] layer
diff --git a/src/service/server_backoff.rs b/src/service/server_backoff.rs
index 0cfe39a7..6326ce6d 100644
--- a/src/service/server_backoff.rs
+++ b/src/service/server_backoff.rs
@@ -1,6 +1,6 @@
 use std::{
     collections::HashMap,
-    sync::{Arc, RwLock},
+    sync::{Arc, Mutex, RwLock},
     time::{Duration, Instant},
 };
 
@@ -8,7 +8,7 @@ use rand::{thread_rng, Rng};
 use ruma::{OwnedServerName, ServerName};
 use tracing::{debug, info, instrument};
 
-use crate::{services, Error, Result};
+use crate::{observability::METRICS, services, Error, Result};
 
 /// Service to handle backing off requests to offline servers.
 ///
@@ -36,6 +36,8 @@ use crate::{services, Error, Result};
 /// the server is only briefly offline.
 pub(crate) struct Service {
     servers: RwLock<HashMap<OwnedServerName, Arc<RwLock<BackoffState>>>>,
+
+    server_counts: Mutex<ServerCounts>,
 }
 
 /// Guard to record the result of an attempted request to a server.
@@ -75,10 +77,27 @@ struct BackoffState {
     jitter_coeff: f64,
 }
 
+/// State transitions for a single server
+#[derive(Debug, Copy, Clone)]
+enum Transition {
+    /// A new server, marked as online by default
+    New,
+    OnlineToOffline,
+    OfflineToOnline,
+}
+
+/// Counts of known servers in each state, used for metrics
+#[derive(Debug, Copy, Clone, Default)]
+struct ServerCounts {
+    online_count: u64,
+    offline_count: u64,
+}
+
 impl Service {
     pub(crate) fn build() -> Arc<Service> {
         Arc::new(Service {
             servers: RwLock::default(),
+            server_counts: Mutex::default(),
         })
     }
 
@@ -113,6 +132,45 @@ impl Service {
         })
     }
 
+    fn record_transition(
+        &self,
+        server_name: &ServerName,
+        transition: Transition,
+    ) {
+        let mut counts = self.server_counts.lock().unwrap();
+
+        match transition {
+            Transition::New => {
+                info!(
+                    %server_name,
+                    "new remote server, marked as online by default"
+                );
+                counts.online_count += 1;
+            }
+            Transition::OnlineToOffline => {
+                info!(
+                    %server_name,
+                    "remote server transitioned from online to offline"
+                );
+                counts.online_count -= 1;
+                counts.offline_count += 1;
+            }
+            Transition::OfflineToOnline => {
+                info!(
+                    %server_name,
+                    "remote server transitioned from offline to online"
+                );
+                counts.offline_count -= 1;
+                counts.online_count += 1;
+            }
+        }
+
+        METRICS.record_remote_server_count(
+            counts.online_count,
+            counts.offline_count,
+        );
+    }
+
     fn server_state(
         &self,
         server_name: &ServerName,
@@ -134,6 +192,7 @@ impl Service {
                     server_name.to_owned(),
                 )));
                 servers.insert(server_name.to_owned(), Arc::clone(&state));
+                self.record_transition(server_name, Transition::New);
                 state
             }
         }
@@ -193,9 +252,12 @@ impl BackoffGuard {
 
         state.failure_count = 0;
 
-        if state.is_online() != was_online {
-            let server_name = &state.server_name;
-            info!(%server_name, "server transitioned from offline to online");
+        // Server is always online after setting failure_count = 0
+        if !was_online {
+            services().server_backoff.record_transition(
+                &state.server_name,
+                Transition::OfflineToOnline,
+            );
         }
     }
 
@@ -223,8 +285,10 @@ impl BackoffGuard {
             );
 
             if state.is_online() != was_online {
-                let server_name = &state.server_name;
-                info!(%server_name, "server transitioned from online to offline");
+                services().server_backoff.record_transition(
+                    &state.server_name,
+                    Transition::OnlineToOffline,
+                );
             }
         }
     }