AI Data Centers Drive $7 Trillion Spending by 2030, Stressing Insurers

Global spending on data centers could reach $7 trillion by 2030, as reported by McKinsey. Private infrastructure data center deals consistently exceeded $10 billion last year, with the largest at $40 billion involving Nvidia (NVDA), Microsoft (MSFT), BlackRock, and xAI in acquiring Aligned Data Centers. This influx of capital, much financed through private equity and private credit, has presented significant challenges for insurers, particularly with multi-billion dollar projects. As stated by Gallagher's Tom Harper, insuring such large campuses is increasingly difficult due to capacity issues within the insurance market.