Kathmandu. Driven by artificial intelligence (AI)-driven demand, data center power consumption could nearly triple globally by 2030. As a result, insurers are forced to reassess where they are exposed to vulnerable power grids, weather hazards and cyber threats.
Terrence Williams, head of commercial risk for Aon Plc’s Asia Pacific region, said power availability and energy resilience were key concerns as data centre facilities became hyperscale. “AI-driven demand could boost data center power consumption by 165% globally by 2030,” Williams said.
Property developers are adding power generation, battery storage, microgrids and hybrid energy systems to reduce grid disruptions. “These systems can also cause fires, equipment failures and maintenance risks,” Williams said. ’
According to Williams, Aon has increased the capacity under its data center lifecycle insurance program from $3.5 billion to $5 billion. The program assesses the risks associated with design and construction through the generation and operation of electricity.
HDI Global SE said in an August report that natural disasters and weather conditions are also impacting data center locations and construction standards in the Asia-Pacific region. “Tokyo is at risk of earthquakes, typhoons, and floods,” the report said. Storm surges can reach winds of up to 200 miles per hour. While the weather forecast indicates increasing heat and rainfall. —Agency
