According to reports by Allianz Commercial, the data centre insurance market globally is expected to hit US$24 billion (A$34 billion) by 2030, up from the current US$11bn (A$15.55 billion), all thanks to increases in operational complexity, capacity expansion and the insurance values of infrastructure.
At the same time. annual investment in the technology is expected to double from roughly US$500 million (A$708 million) in 2024 to over US$1 trillion (A$1.4 trillion) by next year.
Currently, the US and China account for over 60 per cent of global capacity growth through 2030, but Australia, like many countries around the world, has begun its rollout of data centres.
This growth means that data centres are being treated as different entities from what they once were by a number of industries, including the insurance space.
“AI is turning the latest generation of data centres from a specialist real estate asset into mission-critical infrastructure,”said CEO of Allianz CommercialThomas Lillelund.
“The scale of investment is extraordinary, and, as these centers 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.”
However, with increased investment comes increased risk. At the same time, 80 per cent of global data centre capacity is located in areas with greater risk of natural catastrophe. Not only are these expensive structures and investments, but as the world becomes more dependent on what they provide, the impact of their inoperation grows, impacting other parts of supply chains and businesses.
“For insurers, the key question is not only the value of the building, but the concentration of value and dependency inside and around it,” says global head of construction claims at Allianz Commercial, Christian Kolbe.
“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 center lifecycle. Resilience must be designed in from the earliest planning stage.”
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