Demand for data center capacity is booming, which won't come as a surprise to any of our listeners, but that boom is extending into the associated areas that are looking to manage risk in this growth. Analysts Tony Lenoir and Kelly Morgan return to the podcast to discuss an upcoming webinar that explores the challenges that insurers are facing with host Eric Hanselman. The "Underwriting the Digital Backbone: Navigating Risk and Growth in Data Center Insurance" webinar digs into the complex risk equations that insurers have to navigate. Data center projects have escalated in scale and cost and this creates concerns not only about financing, but also the entangled supply chain and energy grid connectivity pathways. When data center power demands are approaching the gigawatt level, simply providing reliable power becomes much more challenging.

At the same time, the risks for data centers are becoming more complicated. The shift to liquid cooling can deliver much more efficient operation, when compared with air cooling, but it has a downside. When racks of GPU's can dissipate almost a megawatt of energy, even short interruptions of cooling supply can cause catastrophic damage. And the GPU's being damaged are tremendously valuable and in short supply. Business continuity insurance has to account for these much greater loss potentials, as well as looking at location risks from environmental hazards. Geopolitical concerns are now a key part of balancing risk, as well. Check out the webinar for a deeper dive with more details.

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For S&P Global subscribers:

• 2026 Trends in Data Center Services & Infrastructure
• S&P Global Data Center & Energy Innovation Summit: Lending and investing
• Revamped US energy strategy — meeting AI-driven data center demand amid shifting geopolitics

Credits:

• Host/Author: Eric Hanselman
• Guests: Tony Lenoir, Kelly Morgan
• Producer/Editor: Feranmi Adeoshun
• Published With Assistance From: Sophie Carr, Kyra Smith