The explosive growth of artificial intelligence has fueled a surge in data center projects across the United States, with industry forecasts projecting $475 billion in spending for 2025 alone and trillions more over the next decade. Recent federal initiatives, including streamlined permitting and funding through the administration’s AI Action Plan, are expected to accelerate this trend.
But with these large-scale facilities come complex risks—ranging from construction exposures to cyber threats—making insurance coverage a crucial consideration for developers, operators, and investors.
Key Coverage Types
- Builders Risk Coverage – Essential for protecting buildings, equipment, and materials during the construction phase as well as potential delays.
- Property & Business Interruption Insurance – Coverage must account for high-value equipment, continuous operations, and risks such as fire, water damage, and power failures.
- Cyber Insurance – As data centers process massive volumes of sensitive information, robust cyber coverage is critical to mitigate evolving threats.
- Liability Coverage – General liability and E&O policies can help protect against claims from construction impacts or professional services.
With projects becoming larger and more sophisticated, policyholders must ensure that their insurance programs are tailored to the unique risks of AI-driven data centers.
For a more fulsome discussion of key insurance coverage considerations for data centers, see our recent Insight and for even more insights visit our data centers industry page.