Willis, a WTW business, is urging data center owners, developers, builders, operators and investors to move away from capacity-led insurance buying and toward risk-based coverage. The broker warns that many organizations are securing far more insurance capacity than their actual exposures require, because risks across the digital infrastructure lifecycle are not being fully understood or quantified.
Global markets can deliver up to US$15 billion in insurance capacity for large-scale data center risks, Willis said. But the broker argues that the more important question is how much capacity is truly needed after a thorough evaluation of exposures. Overbuying capacity does not always translate to better protection, and it can tie up capital that could be used more efficiently elsewhere.
Risk profiles differ sharply across the lifecycle
Digital infrastructure risk profiles vary significantly depending on site selection, power infrastructure, construction methodology, operational resilience, supply-chain dependencies, climate factors and cyber vulnerabilities. Willis's eight-point digital infrastructure risk framework targets these variables, using sharper risk analysis to help clients refine coverage, cut unnecessary costs, and provide clearer information to lenders and investors.
By assessing natural hazards and climate risk early in the development lifecycle, Willis said, data center owners and developers can embed resilience measures into asset design from day one. These include flood protection, enhanced wind resistance, seismic design enhancements, heat and drought adaptation, wildfire mitigation features, blast resistance and other location-specific controls. Cost-benefit analysis can then support capital allocation and demonstrate a stronger risk profile to insurers, lenders and investors.
Moving from capacity-led buying to data-led decisions
"Buying more insurance is not always the same as being better protected," said Alastair Swift, Head of Willis Global Specialties & CEO. "When risks are properly modelled, understood and mitigated, clients can build more efficient, resilient insurance programs that reflect their actual exposures. This is especially important where lenders and equity partners expect robust protection; a more tailored approach can often deliver greater value."
Willis encourages clients to quantify exposures across design, construction and operations, model realistic loss scenarios rather than relying on market conventions, and embed resilience by design early in development. The broker also advises assessing infrastructure dependencies such as energy, water, cooling and continuity, and using verifiable data to support discussions with insurers, lenders and investors. As insurance analytics mature, even AI for Insurance applications are helping underwriters and brokers get more granular in modeling such risks, though the core principle remains the same: evidence-based coverage beats blanket capacity.
"As the global digital infrastructure sector scales, clients need a clearer understanding of what they are trying to insure and why," said Jackie Bolig, Head of Placement and Broking Solutions for North America at Willis. "The goal should be to buy the right amount of insurance, supported by evidence, analytics and a thorough understanding of risk, not simply seeking the largest capacity available."
Why this matters for insurance professionals
Brokers and underwriters who work with data center clients can use frameworks like Willis's to shift conversations from "how much capacity can you get?" to "how much coverage does the exposure actually warrant?" This approach reduces wasted premium for clients, strengthens relationships with risk managers, and can satisfy lender demands for resilience without overcomplicating the program. For insurers, better risk selection and clearer data on mitigation measures can improve underwriting results in a sector where large-scale losses are infrequent but potentially severe.
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