2026-08-17 · Source: Insurance News Australia
Summary in 3 Points • Global data centre insurance market projected to reach $US24 billion by 2030 • Annual AI-driven data centre investment could exceed $US1 trillion next year • 79% of data centre capacity is in areas with heightened natural catastrophe risk --- Allianz Commercial has highlighted a significant growth in the global data centre insurance market, which is expected to more than double in value to $US24 billion by 2030. This growth is driven by substantial investments in artificial intelligence, leading to one of the largest infrastructure investment cycles in decades. The US and China are anticipated to dominate global capacity additions, while Europe and Asia-Pacific regions are also set for rapid expansion. Climate resilience is becoming a strategic focus, as 79% of data centre capacity is located in areas vulnerable to natural catastrophes. Fire remains the leading cause of loss severity in data centre-related claims, followed by natural disasters and cyber threats.
The projected growth in the data centre insurance market presents opportunities for London Market insurers to expand their portfolios. Underwriters may need to consider the increased risk profiles associated with larger, more complex data centres. Policy wording might need adjustments to address the concentration of value and dependencies within these facilities. Additionally, the focus on climate resilience could influence pricing strategies as insurers assess exposure to natural catastrophe risks.