Insurance coverage challenges amid the data center boom
CNBC says soaring data center asset values—and their increasing concentration in regions exposed to hurricanes, floods and other natural disasters—are underscoring the need for insurance coverage.
TLDR
CNBC reports that the rapid buildout of massive data centers is creating tens of billions of dollars in concentrated physical assets. As those assets become increasingly clustered in disaster-exposed regions, traditional insurance markets may struggle to handle the coverage challenge on their own, CNBC says.
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