Insurance

Capital spending to build hyperscale data center campuses has reached tens-of-billions of dollars per site, pushing beyond the levels at which traditional property and construction insurance markets have historically provided full replacement-style coverage at a single location. These constraints primarily apply to physical construction and real asset development. As a result, insurance for data centers is increasingly structured through probable maximum loss (PML) or maximum foreseeable loss (MFL)-based and layered programs that may only cover part of the total project value, leaving a larger share of exposure outside the insurance coverage than has been typical for large-scale infrastructure.