Data centres: a rapidly expanding and increasingly complex sector

Jean-Guibert Ciavaldini Raphael Cerda

Analyses

3 minutes

09 June 2026

The exponential growth of cloud, artificial intelligence, and data is propelling the data center sector into a new era. Global investments are exploding: data center construction is expected to reach nearly $174 billion by 2026, with an annual growth rate of over 15% and an estimated active project pipeline of nearly $3 trillion. This dynamic is accompanied by a diversification of players, technologies, and markets, but also by an increase in risks.

Multiple and evolving risks

Data centers concentrate technical, financial, energy, and regulatory challenges. At each stage of the life cycle - from design to operation, including construction and disposal - risks multiply and intensify.

  • Electrical and water risks: the availability of energy and water is becoming a critical factor, with tensions on access to the network, managing peak consumption, and the scarcity of resources.
  • Cyber risks and business continuity: data security and resilience against cyber attacks are now at the heart of concerns.
  • Environmental and regulatory risks: compliance with ESG standards, managing environmental impacts, and adapting to regulatory changes are major challenges.
  • Construction-related risks: intensity losses (fire, water, natural hazards), damage to structures, specific risks (cooling, transformers), third-party claims.
Cables rouges

Insurance as a strategic tool

Faced with this complexity, insurance is no longer limited to simple protection, it becomes a true strategic management tool.

  • Upstream, it is about meeting the requirements of investors, aligning contracts and insurance, and anticipating budgets. 
  • During construction, it is necessary to control major risks and ensure project continuity. 
  • During the operational phase, coverage must include property damage, business interruption, cyber risks, directors' liabilities, and even parametric solutions for SLAs and natural disaster issues.

A tailor-made support

Howden France positions itself as a specialized partner to support this strategic sector, thanks to a unique combination of expertise - Construction, Property, Liability, Cyber, Transport, GAP - and a sharp knowledge of the Energy and Tech sectors. 

At every stage of the data centers' lifecycle, in France and internationally, our experts offer tailor-made insurance solutions, aligned with the business challenges and contractual obligations of the stakeholders. 

In a rapidly changing environment, the resilience of data centers depends on their ability to anticipate, manage, and transfer risks. Insurance helps secure investments, support technological transformation, and address regulatory and environmental challenges.

Rapport Construction

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Report "Data Centers & Construction Assurance"

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