Data centre insurance premiums set to double to $24 billion by 2030
Data centre insurance premiums will double to $24 billion by 2030, driven by AI growth.
The global insurance industry is racing to insure data centres that power AI systems. Premiums will rise from $11 billion to $24 billion by 2030, according to Swiss Re.
About 40 per cent of America's data centre capacity sits in tornado zones. More than a quarter face large hail strikes multiple times each year.
Many centres cluster in Virginia and Texas. A single disaster could affect multiple facilities at once.
Inside the buildings, operators put lithium battery storage right next to expensive AI chips. They do this to keep power stable.
If a battery catches fire, it could destroy millions of dollars of semiconductors and equipment. A data centre failure could interrupt massive economic activity at that site.
This could lead to huge business interruption claims.
- $11 billion to $24 billion by 2030
- Premium growth target
- 40 per cent
- US capacity in tornado zones
- More than a quarter
- Centres at risk of hail strikes
- Virginia and Texas
- Main cluster locations
Why it mattersAI infrastructure is creating new insurance costs and risks. Future claims could be far larger than today's premiums suggest.
AustraliaAustralian companies operating or planning data centres may face rising insurance costs as this market grows, affecting the cost of hosting AI services locally.
✓ Claims checked against the source. checked 1 d ago
