Booming data center sector ‘faces mounting risks’

Germany-based Allianz Commercial said global demand for AI is driving a surge in data center construction, but rising costs and complex risks could limit future growth, Continuity Insurance & Risk Magazine reported. Estimates suggest as much as $7 trillion will be spent on data centers by 2030, with operators facing challenges such as power supply constraints, fire exposure including from lithium-ion batteries and the need for specialized insurance policies.