The increase in data center infrastructure and greater energy consumption has led to an increasingly complex insurance risk landscape in this industry. According to a report by Howden, the number of major legal claims related to data centers has risen from four in 2021 to 14 in the first half of 2026. Planning and environmental disputes are the primary drivers of these claims.
Increase in Complaints and Legal Claims
Complaints related to noise and disturbances, particularly those concerning pollution from diesel generators and water consumption, are on the rise, accounting for 78% of the growth in liability claims in this industry over the past three years. Currently, Europe has approximately 3,300 to 3,500 data centers, with Germany and the UK leading in this area. However, the large-scale infrastructure under construction has prompted negative reactions from residents and observers.
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Geopolitical Challenges and War Risks
Geopolitical issues in infrastructure have also added challenges to this sector. According to Howden's research, by 2025, data center space located within 10 to 15 kilometers of war-affected areas will account for 60% of the total registered space in the past five years. This indicates the expansion of digital infrastructure near war zones. Earlier this year, five data centers in the United Arab Emirates and Bahrain were targeted by drone attacks, marking the first intentional targeting of data centers during wartime.
With the convergence of physical and digital risks, the boundaries between cyber insurance, property insurance, and war insurance are blurring. Edward Howland Jackson, Chief Commercial Officer of Howden, stated that "the growth of artificial intelligence is driving significant investments in data centers globally, but as our analysis shows, the risks associated with this expansion are highly diverse and complex." He added: "For operators, developers, and investors in data centers, understanding where these risks are concentrated is critical. The opportunity for insurers is not just to provide more capacity but to help clients identify these risks earlier and build greater resilience as this sector expands through the use of data, expert advice, and risk transfer."
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