Demand and risks for global data centre insurance growing: Swiss Re

ZURICH: Fast growth in data centre construction is pushing up insurance demand and risks for the sector, a report published by Swiss Re on Friday said.

Global insurance premiums linked to data centres are expected to rise to USD24.2 billion by 2030 from an estimated USD10.6 billion currently, the report said.

Noting that building costs for one site can exceed USD20 billion, financing institutions are pressing insurers for limits that cover the full cost of construction, Swiss Re said.

“They’re not just buildings, they are highly integrated systems where you have power, cooling, hardware, and software that all depend on each other,” Swiss Re’s Head of Engineering and Nuclear Jimmy Keime told Reuters.

However, the likelihood of a full loss is very low, he said.

The re-insurance and insurance industry can only support a fraction of the full costs at competitive rates for traditional risk policies, Swiss Re said.