CNBC reported Oct. 29 that Aon Chief Executive Greg Case warned AI data center clusters could make coverage harder to secure and complicate developers’ debt access for major infrastructure projects.
The risk grows when facilities share critical systems. In an Aug. 13 analysis, Aon said campuses in the same region may rely on common power, cooling, grid links, equipment, contractors and supply chains. A disruption could then generate claims affecting several locations and policies, putting pressure on insurance and reinsurance capacity.
The planned buildout could be much larger than today’s typical insured project. Some hyperscaler campuses planned over the coming five years could involve more than $20 billion in capital spending before high-value equipment, Aon estimates. Most current data center projects have insured values below $2 billion, according to Aon; capital spending and insured value are separate measures.
Aon says concentrated exposure may leave buyers with less insurance available, require them to keep a larger share of potential losses or lead them to accept narrower terms. The firm also said some buyers may turn to captives and structured risk-financing arrangements.
Owners, operators, tenants, utility providers and financiers have connected responsibilities for managing exposure, Aon says. Insurers and reinsurers face potential claims that may span several sites.
Brian Hearst, Aon’s Global Digital Infrastructure CAR/Builders Risk Leader, said underwriters are asking “important, reasonable questions” as they consider capacity for future digital infrastructure projects. Aon says clearer exposure information, engineering and site design can help insurers assess projects and support capital deployment.
In July, Aon said its Data Center Lifecycle Insurance Program had expanded to $5 billion. The program provides coverage for construction, delay-in-start-up, property damage and business interruption, backed by A-rated insurers and other facilities and products. The potential insurance hurdle joins electricity constraints raised in EconoTimes’ coverage of power buildout and AI data center openings.
