Kathmandu. Data center expansion in Asia is increasing the demand for electricity infrastructure and insurance. <\/p>\n
According to a September report by Leo Fu, head of natural resources Asia at Willis Towers Watson Plc, the growth of AI and data centers is making reliable energy a strategic asset across Asia. “Asia’s data center development pipeline is projected to reach a record 26.5 GW in the first six months of 2026,” the report said, “accounting for nearly half of the capacity being built in Southeast Asia.” \u2019<\/p>\n
This expansion is increasing investment in power generation, grids, energy storage, and on-site power systems. That’s because operators are looking for reliable power for large data centers. <\/p>\n
According to Fu, the concentration of electricity demand means insurance companies should consider how problems in power generation, grid, cooling, water, cyber systems and supply chains can disrupt data center operations. Still, high demand for electricity infrastructure has not tightened the region’s insurance market. <\/p>\n
According to Willis, the Asian energy insurance market was very competitive in the first 6 months. This is because the strong profits of insurance companies and sufficient reinsurance capacity encouraged companies to compete for business. <\/p>\n
International and regional insurance companies continue to provide capacity. However, the increasing share of Middle Eastern insurance companies has increased competition. <\/p>\n
This trend reflects declining insurance rates across Asia. According to Mars LLC, overall commercial insurance rates in Asia fell by 5% in the second quarter. This is equivalent to the decline seen in the previous 4 quarters. <\/p>\n
Global insurance rates fell 6 percent in the quarter. This is the eighth consecutive quarterly decline. “The outlook for the first six months of 2026 is positive,” Fu said, adding that the Asian energy insurance market is highly competitive. Insurance companies looking to maintain premium income and gain market share are helping to negotiate the prices and terms they offer when renewing coverage. \u2019<\/p>\n
The question is whether the rapid investment in data centers and the energy infrastructure that supports them will eventually find enough insurance capacity to change that balance. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Data center expansion in Asia is increasing the demand for electricity infrastructure and insurance. According to a September report by Leo Fu, head of natural resources Asia at Willis Towers Watson Plc, the growth of AI and data centers is making reliable energy a strategic asset across Asia. “Asia’s data center development pipeline is […]<\/p>\n","protected":false},"author":16,"featured_media":309143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-318707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/318707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=318707"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/318707\/revisions"}],"predecessor-version":[{"id":318708,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/318707\/revisions\/318708"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/309143"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=318707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=318707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=318707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}