Verisk Launches U.S. Data Center Exposure Database for Insurers

Verisk has unveiled a new U.S. Data Center Exposure Database, featuring details on over 2,500 data center sites to aid insurers, reinsurers, and brokers in catastrophe exposure management.

This comprehensive database offers precise building-level data essential for risk management, especially as artificial intelligence (AI) continues to drive demand for digital infrastructure. By providing rooftop-level geocoding and detailed facility information—such as construction type, floor area, capacity, and redundancy—it supports insurers in evaluating risk and managing portfolio concentrations effectively. The database is compatible with Verisk’s Synergy Studio and Touchstone catastrophe modeling tools and is available in various data formats for geospatial analysis.

Data Centers: More Than Just Storage

AI's explosion is transforming data centers from simple storage spaces to critical components of high-performance computing infrastructure. These facilities are concentrated with significant insured assets, making it crucial for insurance professionals to understand their unique exposures. According to industry forecasts highlighted by Verisk, data center insurance premiums are set to soar to $10 billion by 2026 and reach $23 billion by 2030. Consequently, investments in data center infrastructure are expected to double in the coming years, expanding beyond traditional server halls to encompass broader infrastructure elements such as power and networking systems.

Navigating the Challenges of Location Quality

Insurance stakeholders face challenges in assessing large insured property concentrations, particularly in areas prone to natural catastrophes like hurricanes, floods, and earthquakes. Verisk's database aims to mitigate these issues by providing detailed, facility-specific data. This advancement supports carriers and brokers in enhancing underwriting, catastrophe analysis, and exposure management, ultimately leading to more accurate risk assessments.

“The conversation around AI is increasingly about physical infrastructure,” shared Rob Newbold, president of Verisk Catastrophe and Risk Solutions. Jay Guin, executive vice president and chief research officer, emphasized that data centers now represent one of the fastest-growing concentrations of insured value, necessitating robust risk measurement and management strategies.

Insurance Industry Implications

With the expanding role of data centers, insurance professionals must strategically manage risk exposure to prevent significant financial losses. The database not only aids in identifying exposure concentrations but also informs catastrophe modeling and accumulation assessments. Understanding these facilities' exposure is crucial—both from an investment and risk standpoint—as they hold billions in assets and serve a myriad of enterprises and government agencies.

As Verisk continues to adapt to the burgeoning data center landscape, insurance professionals are encouraged to leverage this database to enhance risk management frameworks and better prepare for the industry's evolving demands.