{
  "id": 12596057,
  "title": "America's changing disaster risk hits energy",
  "url": "https://urgent.news/2026/10/07/americas-changing-disaster-risk-hits-energy",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-07T09:25:04.000Z",
  "source": {
    "name": "Axios",
    "slug": "axios",
    "url": "https://www.axios.com/2026/10/07/extreme-weather-thunderstorms-insurance-energy-grid"
  },
  "original_language": "en",
  "account": "For years, hurricanes have been the primary focus when it comes to making the power system more resilient against extreme weather. However, the U.S. energy buildout is facing growing risks from severe thunderstorms. As more energy infrastructure and data centers are constructed in harm's way, developers and insurers are facing larger potential losses when these storms occur.\n\nRecent analysis from risk analytics firm Verisk indicates that severe thunderstorms now account for 40% of modeled global insured catastrophe risk, compared to 27% for hurricanes. Within the U.S., $117 billion, or 68%, of Verisk's modeled global insured catastrophe losses are attributed to these storms.\n\nA warmer atmosphere can hold more moisture, potentially creating more conducive conditions for powerful thunderstorms. Nevertheless, the impact of climate change on severe storms is complex. NOAA research scientist Harold Brooks explained to Axios that while other atmospheric conditions necessary for severe storms may become less favorable as the planet warms, the overall threat level remains high.\n\nJay Guin, a Verisk analyst, emphasized that growing exposure, rather than climate change, is the main driver of rising insured losses. As more valuable property is built in harm's way, the increased exposure and higher reconstruction costs are much larger factors in the increasing losses.\n\nThe energy sector is witnessing new types of exposure due to the changing energy system. Verisk is now assessing risks to renewable projects in areas prone to tornadoes and hail, where large hail can cause significant damage to solar farms. While these projects are renewable, they represent a new asset class that is particularly vulnerable to storm damage.\n\nData-center developers must carefully balance natural-hazard exposure against access to land, power, and water. Some sites boast billions in property and hardware, making the stakes for siting and engineering much higher.\n\nAccording to Brooks, tornado activity has increased by about 10% in the Mid-South, while it has declined by roughly the same amount from the Texas Panhandle through western Kansas. Population densities are significantly higher in rural areas of the Southeast, with roughly 100 times more people per square kilometer compared to the High Plains. A tornado in these densely populated areas can affect a large number of buildings and people.\n\nThe biggest thunderstorm-related concern for infrastructure is flooding, as heavy rain and flooding pose significant threats to virtually all infrastructure. There is no safe climate zone, as emphasized by Guin, highlighting the need for developers and insurers to carefully consider the risks associated with severe thunderstorms when building and maintaining energy infrastructure.",
  "summary": "Hurricanes have long dominated efforts to make the power system more resilient to extreme weather . But America's energy buildout is running into growing risks from severe thunderstorms. Why it matters: New energy infrastructure and data centers are being built in harm's way as severe weather risks shift , leaving more for developers and insurers to lose when storms hit. Driving the news: Severe…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}