While global sentiment may be subdued in some sectors, there is a lot of excitement about data centres. Demand for data centre capacity is expected to grow rapidly in coming years, driven not only by customer demand but also by the rapid rise of artificial intelligence (AI) advancements. To meet this demand, AI data centre capacity is conservatively projected to experience a compound annual growth rate (CAGR) of 40.5% through 2027, according to estimates from the International Data Corporation (opens a new window).
Data centres need to meet and exceed exacting standards from often demanding customers, both during construction and the data centre’s operational life. Whilst there is much positive pressure on developers to deliver these increasingly large and complex construction projects quickly; quality and reliability are cornerstones of every customer requirement. Owners may face significant financial consequences should they not meet the ‘Ready For Service’ date or the standards they have agreed with their customers. Risk management, which includes engaging with the global insurance market, must therefore be a key consideration. The global insurance market has rightly identified technology and digital infrastructure as an area of focus for both capacity and IP deployment. Engaging with insurers effectively will create opportunities to secure good terms for transferring risk from investors' and owners' balance sheets to insurers.
We have specialised expertise and extensive experience in these industry sectors and can provide comprehensive advice and negotiate innovative solutions with insurers to suit your specific needs.
In this document our specialists discuss data centre risk considerations for every stage of a project, from planning and construction through to a potential sale, including recommendations for mitigating these risks.
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