Swiss Re Urges Insurers to Influence Data Center Design Amid Rising Cyber Risks
Swiss Re's latest Sigma report highlights the need for insurers to participate in the design of AI data centers before construction. Global data center insurance premiums are expected to exceed $24.2 billion by 2030, more than doubling. The report emphasizes that new generation data centers present unprecedented risks that traditional actuarial models cannot yet measure. Swiss Re advocates for early intervention in infrastructure design and transparency about underlying risks to ensure fair pricing and adequate coverage.
Theia Market Signal Identification - AI Assisted
Swiss Re calls for insurers to be involved in the design of AI data centers prior to their construction, as highlighted in their Sigma report. Global data center insurance premiums could surpass $24.2 billion by 2030, reflecting a growth of 14% annually.
Traditional insurance models, based on historical data, struggle to account for new risks associated with advanced data centers, such as lithium-ion batteries and liquid cooling systems. Additionally, geographic factors increase risks, with significant portions of U.S. data center capacity located in areas prone to severe weather. Swiss Re suggests that insurers must influence design choices to enhance risk governance and ensure sustainable infrastructure deployment.
Comments