Finance
Demand and Risks for Global Data Centre Insurance Growing, Swiss Re Says
Published by Global Banking & Finance Review®
Posted on March 27, 2026
2 min readLast updated: March 27, 2026
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Swiss Re says surging data centre construction is driving a jump in insurance demand and exposure. Premiums could more than double from about $10.6 billion now to $24.2 billion by 2030, while risks—from extreme weather to cooling and power failures—are rising sharply.
Swiss Re Reports Rising Global Demand and Risks for Data Centre Insurance
Rising Insurance Demand and Emerging Risks in Data Centre Construction
Growth in Data Centre Construction and Insurance Premiums
March 27 (Reuters) - 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 $24.2 billion by 2030 from an estimated $10.6 billion currently, the report said.
Challenges in Covering Construction Costs
Pressure from Financing Institutions
Noting that building costs for one site can exceed $20 billion, financing institutions are pressing insurers for limits that cover the full cost of construction, Swiss Re said.
Limitations of the Insurance Industry
However, the re-insurance and insurance industry can only support a fraction of this limit at competitive rates for traditional risk policies, Swiss Re added.
Physical and Environmental Risks
Accumulation of Value and Physical Risks
"This accumulation of value heightens the impact of physical risks, including natural catastrophes," the report said.
Additional Risks to Data Centres
Water Damage and Power Supply Issues
Alongside natural catastrophes, there are also risks like water damage from cooling failures and breaks in power supply.
Geographical Exposure to Natural Hazards
Swiss Re expects over a quarter of U.S. data centre capacity to be in areas with substantial exposure to hail fall and over 40% of capacity in areas significantly exposed to tornado risks.
(Reporting by Marleen KaesebierEditing by Dave Graham)
Key Takeaways
- •Global data centre insurance premiums projected to rise from ~$10.6 billion currently to $24.2 billion by 2030, reflecting rapid sector expansion and high construction costs (exceeding $20 billion per site).
- •Insurers and reinsurers face capacity constraints: traditional risk policies can only support a fraction of construction limits at competitive rates, pushing demand for innovative structures and reinsurance solutions.
- •Physical hazards—natural catastrophes, hail, tornadoes—along with operational risks like cooling failure and power interruptions are growing critical exposures for the data centre insurance market.
Frequently Asked Questions about Demand and risks for global data centre insurance growing, Swiss Re says
1Why is demand for data centre insurance increasing?
Demand is rising due to fast growth in data centre construction and higher site-building costs, leading institutions to seek greater insurance coverage.
2What risks are associated with insuring data centres?
Risks include physical hazards such as natural catastrophes, water damage from cooling failures, and power supply interruptions.
3How much are data centre insurance premiums expected to grow?
Global insurance premiums linked to data centres are projected to increase from $10.6 billion today to $24.2 billion by 2030.
4Which areas in the U.S. have the highest risk exposure for data centres?
Over a quarter of U.S. data centre capacity is exposed to hail risk, while over 40% face significant tornado risk.
5Can insurers cover the full cost of data centre construction?
Insurers can currently support only a fraction of the required coverage limits for data centre construction at competitive rates.