How Insurance Technology Is Transforming Data Centre Risk

The insurance industry is responding to unprecedented data centre growth with technology-enabled risk management approaches that embed expertise from initial planning through to live operations.

As global data centre investment could reach US$6.7tn by 2030, insurers are deploying specialist engineering teams and developing digital advisory practices to address the unique exposures of hyperscale and AI-driven facilities.

Zurich Resilience Solutions, part of Zurich Insurance, has launched a dedicated Data Center Risk Advisory practice that brings together more than 100 specialist risk engineers.

The practice could represent a shift in how insurance technology addresses infrastructure risk, moving from reactive claims processing towards proactive risk prevention integrated into project delivery.

Jon Tate, Head of Core Risk Engineering at Zurich Resilience Solutions US, explains the rationale behind this approach: "With more than 100 risk engineers specialising in data centres – supported by a broader team, each with an average of 26 years of experience working with various industries and hazards – the new practice reflects our 360° view of risk."

The formation of this practice follows data centre investment surging 92% year on year to US$32.9bn in November 2025, creating heightened exposure to construction delays, operational failures and safety incidents as development timelines compress.

Integrating technology with traditional coverage

The advisory practice builds on Zurich's Data Center Project Guard solution, which extends builders' risk coverage with features designed specifically for modern data centre exposures.

These include critical equipment protection, commissioning risk management and support for complex construction sequencing.

By combining technology-enabled risk solutions with embedded engineering expertise, Zurich is positioning insurance as a strategic partner rather than simply a financial backstop.

The firm currently supports more than US$1tn in data centre assets and projects across more than 20 US states, providing prevention and mitigation services from planning through to operational phases.

This insurtech approach addresses risk drivers that traditional insurance models could struggle to manage effectively.

Higher power density, advanced cooling systems and accelerated construction schedules create concentrated exposures that require continuous assessment and intervention rather than periodic reviews.

Risk engineering across the lifecycle

The Data Center Risk Advisory team's expertise spans multiple disciplines, including data centre planning and construction, property and critical equipment protection, operational resilience, physical and cyber risk management, business continuity planning and resilience against extreme weather events.

Craig Phillips, Managing Partner, Advisory Services at Zurich Resilience Solutions US, says the practice reflects data centres' role as critical infrastructure: "We recognise the vital role data centres and AI play in the world – driving innovation, increasing efficiency, and solving complex challenges.

"We're proud to help customers navigate the complexities of data centre builds, reduce exposures and costs and improve project outcomes."

The approach positions risk engineering earlier in project lifecycles, supporting site selection, design reviews, power and cooling strategies and construction planning. This could mean identifying potential failures before they materialise rather than managing consequences after incidents occur.

Technology-driven risk prevention

Zurich's model reflects growing recognition that hyperscale and AI-driven facilities introduce risk concentrations that demand more sophisticated insurance technology solutions.

As AI workloads increase power density and operational sensitivity, traditional insurance-led models could prove insufficient for managing evolving exposures.

The firm works across hyperscalers, developers and contractors, reflecting the interconnected nature of large data centre programmes. By addressing risks at each development stage, the insurtech approach aims to reduce costly rework, minimise delays and improve overall project outcomes.

According to Zurich, customer feedback has driven the formalisation of the practice, with the firm reporting a Transactional Net Promoter Score of 97 for its resilience services. This could indicate growing demand for integrated risk advisory capabilities rather than standalone insurance products.

Tate adds: "This approach helps our customers identify and address challenges across every stage of their projects – through construction and into operation, supporting resilience and long-term success."

As data centre facilities grow in scale and criticality, insurance technology solutions that combine risk engineering expertise with digital advisory capabilities could become essential infrastructure for supporting global digital expansion. The convergence of electrical, mechanical and operational risks in modern facilities suggests that insurtech innovation will need to continue evolving alongside the technologies these facilities support.