Dataset Fanout Negatively Impacts Performance when Writing Raster Tiles

Symptoms

When writing a web map or raster tileset with Dataset Fanout turned on, performance considerably slows down when writing and RAM usage skyrockets.
 

Cause

A dataset fanout re-arranges the order of tiles, and also requires all tiles to be accumulated before writing begins, which results in slow performance.
 

Resolution

At this time it is recommended that Dataset Fanout not be used when writing raster tiles.