Today's data centers often include much more than servers and buildings. Many facilities now incorporate on-site power generation, battery storage systems and connections to a broader energy network.
As these facilities become more energy-focused, organizations are reviewing whether their insurance strategies reflect how their operations function today.
Traditional insurance programs were largely designed around physical property. Modern data centers may require additional consideration around power interruption, utility dependencies, transmission infrastructure, equipment values and project transitions.
"The gap between what operators assume is insured and what actually responds when something goes wrong is widening as these facilities get more complex," says Tom Harper, Data Center managing director at Gallagher.
Part of the challenge comes from the convergence of two historically separate areas. Power infrastructure and generation assets have often been insured differently from large real estate and technology projects. Increasingly, those assets exist together within the same facility.
Many operators are also adopting hybrid power approaches that combine grid power, on-site generation and battery energy storage systems. These strategies can support reliability and flexibility, but they may also introduce new operational and insurance considerations.
As Trevor Gilstrap, Energy managing director for oil and gas at Gallagher, notes, "Each of these solutions can introduce exposures that don't fit neatly within traditional property insurance frameworks."
For developers and operators, the conversation begins by viewing power infrastructure as an important part of the overall asset strategy and evaluating insurance programs early enough to align coverage with operational realities.
Our whitepaper, Powering the Data Center Boom: Energy Risk and the New Infrastructure Reality, examines where insurance considerations often emerge within modern power strategies and how integrated approaches can support more effective coverage planning.