Data Centers Offer a Potential $10 Billion Windfall for Insurers

Soaring demand for insurance coverage related to data center construction is creating a “meaningful growth opportunity” for the industry, outstripping some traditional insurance markets, according to S&P Global Ratings.

The market for such coverage could reach $10 billion in premiums in 2026, analysts led by Charles-Marie Delpuech and Patricia Kwan said in a note published Monday. In comparison, annual premiums for the global aviation market are estimated at around $5 billion.

“Demand for large, specialized, power-intensive campuses is creating a meaningful growth opportunity” for the global insurance and reinsurance industries, the S&P analysts wrote.

The widespread adoption of artificial ...