Insurance
Home›Insurance›Industry & Deals›Willis urges data centers to recalibrate insurance cov…
Willis urges data centers to recalibrate insurance coverage for AI growth
Willis says global markets can supply up to $15 billion of capacity for large-scale data center risks, but owners should match coverage to exposures across the full digital infrastructure lifecycle.
Insurance broker Willis, a WTW business, is urging data center owners and investors to rethink traditional insurance buying as digital infrastructure expands and AI-driven demand accelerates the sector.
Willis warns that many organizations may be securing more capacity than their actual risks justify, especially when exposures are not fully understood or quantified. The broker says its eight-point digital infrastructure risk framework is intended to align coverage with real exposure, refine insurance requirements, and improve clarity for lenders and investors.
The firm points to wide variation in risk profiles based on factors including site selection, power infrastructure, construction methods, operational resilience, supply-chain dependencies, climate risks, and cyber vulnerabilities. It argues that sharper risk analysis can also support better capital allocation and resilience planning, rather than simply adding larger insurance towers.
Willis also recommends assessing natural hazards and climate risk early in the development lifecycle so resilience measures, such as flood protection, enhanced wind and seismic design, heat and drought adaptation, wildfire mitigation, and blast resistance, can be incorporated into asset design. Alastair Swift, Willis' Head of Willis Global Specialties and CEO, said buying more insurance is not always the same as being better protected when risks are properly modeled and mitigated.