Swiss Re forecasts massive growth in data center insurance market

Swiss Re reports a massive surge in the insurance market for data centers, driven by the rapid expansion of AI and digital infrastructure. Global premiums for insuring data centers are projected to grow from approximately $10.6 billion today to $24.2 billion by 2030. When combined with renewable energy infrastructure, these sectors could generate roughly $200 billion in insurance premiums between 2026 and 2030.

This investment boom is transforming data centers into strategic infrastructure requiring immense capital, energy, and physical assets. However, this growth introduces significant concentration risks. Swiss Re notes that more than 40% of US data center capacity is located in areas exposed to tornadoes, and over 25% are in large hail zones.

While the demand for coverage is high, the industry faces a challenge in quantifying these risks. The scale of potential losses is substantial; a single natural catastrophe at one site could cost roughly $10 billion, which is more than double the current total market size. Consequently, major hyperscalers are increasingly retaining significant portions of risk on their own balance sheets.