Half of planned US data centers “highly exposed” to natural disaster, $800bn in investments at risk - report
Severe convective storms, hurricanes, winterstorms, and earthquakes
The increasing demand for data centers, driven by AI and digital transformation, is leading to rapid expansion in locations that may not have been fully vetted for environmental risks until now.
This report highlights a significant systemic vulnerability in critical digital infrastructure, potentially impacting future investment strategies and operational resilience for a vast amount of capital.
The perceived risk profile for data center development in certain US regions will increase, likely leading to more stringent site selection criteria and potentially higher construction/insurance costs.
- · Resilient infrastructure developers
- · Insurance providers specializing in natural disaster risk
- · Data center operators in less exposed regions
- · Geographic information system (GIS) and risk assessment firms
- · Data center developers in high-risk zones
- · Investors in compromised data center projects
- · Regions lacking robust disaster preparedness
- · Cloud service providers relying on at-risk facilities
Significant delays or cancellations of planned data center projects in areas highly susceptible to natural disasters.
Increased operational costs for data centers in vulnerable areas due to enhanced hardening, insurance premiums, and potential downtime.
A potential shift in focus for data center development towards regions with lower natural disaster risk, altering existing geographic patterns of digital infrastructure.
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Read at DataCenter Dynamics