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Data centers can suffer BI exposure from power grid failures
Uptime Institute’s 2025 outage analysis found power failure is the most common trigger of serious and severe data center outages.
Insurance Business highlights that a data center can endure a major storm without physical damage yet still face days of downtime, pointing to business interruption exposure that originates outside the facility.
According to the outlet, Uptime Institute’s 2025 annual outage analysis identified power failure as the most common trigger of serious and severe outages, and the power grid is outside the property line that many risk programs assume covers their exposures.
The article says this dependency gap often goes unaccounted, noting disruptions to grid power, telecommunications, cooling, access routes, or fuel supply can leave a facility unable to operate even if the building remains undamaged.
Insurance Business also quotes risk analyst Johanna Rohrer of HDI Global Risk Consulting arguing that business interruption risk programs tend to focus on building damage, while other dependency failures and ongoing financial damage can keep accumulating beyond repairs.