Data centres are straining the insurance market
EARLIER THIS month Monte Carlo hosted the annual get-together of the world’s insurance firms, including the reinsurers who insure them. The “Rendez-Vous de Septembre” is a swanky affair. Rooms at the main venue often cost more than $2,000 per night. Attendees can choose to arrive via helicopter. The organisers discourage any side-events that might compete with the “Official Cocktail”. Yet at this month’s gathering the gin drinkers’ thoughts drifted to less glamorous locales: the dusty deserts, flat farms and desolate shrublands where data centres are being built.
Despite their downmarket locations, such centres are worth vast sums of money. Their owners are thus keen to insure them against natural catastrophes, cyber-hacks and a host of other dangers. Premiums tied to such projects are set to rise from $11bn today to $24bn by 2030, reckons Swiss Re, a reinsurance giant. That makes data centres a welcome source of growth in an...
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