Data Center Boom Is Testing Insurance Capacity and Claims Response

The explosive growth of U.S. data center construction is creating one of the most complex risk environments the insurance market has seen in years. With hundreds of facilities operating and even more planned, project values have climbed sharply, forcing insurers to assemble coverage through layered programs and multi-market participation. For claims adjusters, this translates into more intricate policy structures, tighter capacity, and heightened scrutiny around wording alignment and loss allocation.

From a construction and property standpoint, data centers concentrate massive values in relatively small footprints. Adjusters dealing with losses during the build phase must navigate policies that evolve over time, with exposures shifting from core-and-shell construction to phased handoffs into property coverage. Misunderstandings over what is insured at each stage, particularly around high-value servers and specialized equipment, increase the likelihood of coverage disputes after a loss.

Cargo and logistics risks further complicate claims. Critical components are often sourced globally, and damage or delay in transit can trigger DSU claims that escalate quickly into the hundreds of millions or more. Supply chain congestion and limited manufacturing capacity extend replacement timelines, increasing business interruption exposure and putting pressure on adjusters to evaluate causation, delay periods, and mitigation efforts.

Power infrastructure has emerged as a defining risk. Limited grid capacity and long lead times for turbines and generation equipment mean power-related failures can delay projects by years. Claims professionals are increasingly called upon to assess losses tied to self-built or repurposed power solutions, often installed by operators without deep experience in energy generation.

For adjusters, the takeaway is clear. Data center claims demand early coordination, deep technical understanding, and careful analysis across construction, property, cargo, and time-element policies. Clear communication among insureds, brokers, and carriers is critical, as is understanding who ultimately carries the risk when losses occur in these high-value, multi-stage projects.