Asset owners and underwriters are paying closer attention to the energy demands and climate implications of artificial intelligence infrastructure. Insurance-market coverage indicates that the rapid build-out of data centers and related hardware is creating new underwriting questions tied to power consumption and physical asset risk.
Pricing exposure to AI-linked projects requires more precise data than what is currently standard. Underwriters need detailed information on power demand profiles, the location and condition of physical assets, and operational dependencies that could affect loss scenarios. Without that clarity, the insurance sector faces difficulty in accurately assessing the long-term risks that concentrated energy use and cooling requirements present to both property and liability books.
Source: https://www.insurancejournal.com/
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