The challenge of securing AI data centers in tornado country
40% of US data centers are concentrated in the tornado area and 25% in the hail area. The proliferation of infrastructures that support AI is leading the sector to estimate that the business will double to $24 billion in premiums before 2030.
The construction of large data centers to support artificial intelligence workloads is driving up demand for insurance. These centers, often built in areas prone to natural disasters, require significant infrastructure and resources, including energy, water, and physical space. According to Swiss Re, around 40% of US data center capacity is located in areas with a high probability of tornadoes, and over a quarter are at risk of hail accumulation.
The insurance industry is responding, with companies like Aon and Marsh developing policies to cover data center construction and operation, and the global data center insurance market is expected to more than double to $24.2 billion by 2030.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
