Global data center insurance premiums more than double by 2030
The insurance world is bracing for a big shift: data center insurance premiums are expected to more than double by 2030, jumping from $10.6 billion to $24.2 billion globally.
This surge comes as data centers get bigger and pricier to build, for some sites can exceed $20 billion, while also facing more threats like natural disasters and system failures.
Limited insurance for US data centers
Data centers aren't just tech hubs: they're vulnerable spots for all sorts of problems.
Over a quarter of US data center capacity is in areas with substantial exposure to hail, and over 40% of capacity is in areas significantly exposed to tornado risk.
Things like cooling breakdowns or power outages can cause millions of dollars in damage, but current insurance only covers a small slice of potential losses.
The report says it's time for smarter risk management so these digital lifelines (and their users) aren't left exposed as the industry keeps expanding.