Artificial intelligence is driving a huge wave of investment in data centres, transforming them from traditional real estate assets into critical infrastructure and creating new challenges for insurers, according to a report from Allianz Commercial.
Annual global investment in data centres is forecast to rise from around US$500bn in 2024 to more than US$1tn by 2027, with the US and China expected to account for around 62% of new capacity additions through 2030. Europe is also set for growth, with expansion accelerating in markets including Spain, Finland and Germany.
Allianz highlights climate resilience as a growing concern, noting that around 79% of global data centre capacity is located in areas exposed to heightened natural catastrophe risk, while more than half faces heat and drought stress.
Thomas Lillelund, CEO of Allianz Commercial, said: “AI is turning the latest generation of data centres from a specialist real estate asset into mission-critical infrastructure.”
He added: “The scale of investment is extraordinary and, as these centres evolve beyond traditional data storage to high-performance compute demands, success will increasingly depend on resilience: access to power, reliable supply chains, robust construction controls, as well as climate-aware site selection and insurance programs that reflect the true accumulation risk. Indeed, comprehensive insurance cover has become a prerequisite for financing many large-scale AI infrastructure projects.”
The report predicts the global data centre insurance market will grow from around US$11bn today to more than US$24bn by 2030, driven by rising asset values, expanding capacity and increased operational complexity.
Analysis of insurance claims found that fire is the leading cause of loss severity, accounting for more than half of approximately €700m of losses, while water damage is the most frequent cause of claims. Natural catastrophes, cyber-related incidents and power failures also remain significant risks.
Christian Kolbe, Global Head of Construction Claims at Allianz Commercial, said: “For insurers, the key question is not only the value of the building, but the concentration of value and dependency inside and around it. Power, cooling, batteries, fiber routes, testing and commissioning, and business continuity planning are all part of the same risk picture. Effective risk mitigation must begin early and continue throughout the data centre lifecycle. Resilience must be designed in from the earliest planning stage.”
Source: commercial.allianz.com
