2026-08-12 · Source: Insurance Business UK
Summary in 3 Points • Allianz Commercial reports data centre investments could double to over US$1 trillion by 2027 • Fire is the leading cause of loss severity in data centre insurance claims • UK government faces planning issues with a hyperscale data centre in Buckinghamshire --- A report by Allianz Commercial highlights the complexities in insuring AI data centres, with investments projected to double to over US$1 trillion by 2027. The insurance market for data centres is expected to grow from US$11 billion to over US$24 billion by 2030, driven by increased insured values and operational complexities. Fire is identified as the leading cause of loss severity, with business interruption being a major driver of claims severity. The report also notes that a significant portion of data centre capacity is in areas with heightened natural catastrophe exposure. In the UK, planning errors for a hyperscale facility in Buckinghamshire highlight the challenges of balancing data centre growth with environmental constraints.
The rapid expansion of AI data centres presents both opportunities and challenges for the London insurance market. Underwriters may need to develop integrated solutions to address the complex risk profiles of these facilities, which include property, construction, business interruption, and cyber exposures. As data centres expand into new regions, understanding local risks will be crucial to avoid unexpected claims. The market may see increased demand for detailed technical assessments and innovative coverage solutions to manage the concentration of value and dependencies within these facilities.