Data-centre risk is becoming a capital allocation question.
The issue is no longer confined to the engineered resilience of one facility.
Boards now need to understand concentration across geography, grid nodes, substations, fibre routes, cooling systems, transformer access, contractors, lenders, insurers and reinsurers.
A storm does not need to destroy every building to create a major loss.
It can damage rooftop equipment at one site, interrupt grid supply at another, delay commissioning at a third and expose the retained layer across the whole portfolio.
That is why captives, reinsurance, parametric structures, collateralised capacity and alternative risk transfer are becoming more relevant to AI infrastructure.
The useful discipline is simple: identify the retained accumulation before the external market prices it for you.
As part of his ‘The Business of Resilience’ mini-series on data centres, Dr Henri Winand looks at data centres as an emerging catastrophe accumulation problem, and why this matters for CFOs, boards, infrastructure investors and risk carriers.
Read the full article here:
https://lnkd.in/ekTSqvRM