Post by Swiss Re

As AI drives investment in larger and more complex data centres, understanding the risks behind this critical infrastructure becomes increasingly important. Fire has been a primary driver of loss severity in data centres, accounting for just 10.9% of loss events but 42.3% of loss costs. As data centres evolve, so do their risk profiles. Many new builds now integrate battery backup systems directly into server racks, introducing potential ignition sources that were not present in previous designs. This could increase both the frequency and severity of fire losses. As data centres grow in scale, complexity and value, understanding how emerging technologies change risk will be critical for insurers, operators and investors alike. This is post 4️⃣ of 9️⃣ in our sigma insights series. Explore the full sigma insights: https://ow.ly/j5GS50Zb32A