Overview
- This summer insurers led by Zurich report severe weather has become the leading cause of losses in U.S. data‑center portfolios, driving a growing share of claims for storm, flood and heat damage.
- Grid operators have begun emergency limits on large power users after high temperatures strained networks, including Energy Department authorization for PJM to curtail data‑center power during May heat.
- A First Street analysis finds about 79% of global data‑center capacity faces elevated acute hazard risk, and more than half of capacity is located in markets with rising chronic heat or drought.
- Developers are moving most new capacity outside traditional hubs, with roughly 64% of projects under construction in frontier markets such as West Texas and Ohio, which raises exposure where local power and water systems are stressed.
- Investments are surging — at least $750 billion committed so far in 2026 — even as analysts warn climate damages could total trillions by midcentury, a shift that could raise insurance costs, tighten permitting and complicate project finance.