Global Data Centre Insurance Market Could Double by 2030

Mashrukh Khan: The rapid expansion of artificial intelligence data centres is creating a new wave of demand for commercial insurance, but it is also concentrating risks in ways that challenge traditional underwriting. Projects are growing larger and more dependent on reliable power, advanced cooling systems and complex digital networks, raising questions about whether insurers can keep pace with the scale and interconnected nature of the exposure.

Swiss Re’s chief underwriting officer for property and casualty reinsurance, Gianfranco Lot, noted in a recent report that the digital economy is becoming a real economy. AI requires data centres, power grids and increasingly sophisticated infrastructure, all of which need insurance. Swiss Re Institute estimates that AI data centres and related renewable energy infrastructure could generate around $200b in commercial insurance premiums between 2026 and 2030.

The United States and China are expected to account for roughly 62% of additional global data centre capacity through 2030, according to analysis from Allianz Commercial. In the Asia-Pacific region excluding China, capacity is projected to rise from about 9 gigawatts to more than 28 gigawatts by the end of the decade, with Malaysia potentially seeing more than tenfold growth. Annual investment in data centres is forecast to climb from around $500b in 2024 to more than $1t by 2027.

The global data centre insurance market itself could more than double to over $24b by 2030 from about $11b today as operators seek cover for construction, equipment breakdown, business interruption, cyber, liability and operating risks. Allianz Commercial’s review of roughly $800m in data centre losses found that fire caused more than half of the severe claims. Natural disasters ranked next, followed by crime, cyber incidents and power failures.

Swiss Re has cautioned that a single failure can ripple across multiple businesses because facilities often share electricity, telecommunications, cooling and network infrastructure. High-voltage transformers can take years to replace, extending downtime and losses. Operators will need careful site selection that accounts for climate risks, robust construction controls and adequate insurance if the sector is to grow sustainably.

The analysis draws on recent reports from Swiss Re and Allianz Commercial examining the insurance implications of the AI-driven data centre boom.