US Data Center Construction Spending Surges to $28 Billion by 2024
U.S. data center construction spending is projected to surge to $28.3 billion by 2024, with 565 operational centers and 571 planned projects. Insurers are facing challenges related to construction coverage and supply chain risks, as power supply constraints could lead to data centers consuming 6-12% of the nation’s electricity by 2028. Effective communication between insurance buyers and brokers is crucial for managing the evolving risk profiles throughout the project lifecycle.
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The construction of data centers in the US has dramatically increased, with 565 operational centers and 571 planned projects as of December 2025. Spending grew from $1.8 billion in 2014 to $28.3 billion in 2024.
Insurers face challenges with construction coverage, requiring capacity from multiple insurers. Cargo and logistics risks are compounded by supply chain pressures, with potential claims exceeding $1 billion for critical components.
As data centers evolve, risk profiles shift, necessitating careful insurance management throughout the project lifecycle. Power supply remains a significant constraint, with forecasts indicating data centers may consume 6-12% of all US electricity by 2028. Effective communication between insurance buyers and brokers is essential for managing project-specific risks.
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