tech
The AI boom is colliding with a new threat: Severe weather
Heatwaves and severe weather are raising risks for AI data centers, from grid strain to higher insurance and repair costs.
TL;DR
- Record heatwaves in Europe highlight the vulnerability of infrastructure like data centers to extreme weather.
- Severe weather is now the leading cause of loss in U.S. data center builders' risk portfolios, driving a third of company losses.
- 79% of global data center capacity faces elevated risks from climate hazards like flooding, extreme winds, and wildfires.
- 64% of data center capacity under construction is moving into 'frontier markets' that may face heightened risks from tornadoes, hail, and high winds.
- Extreme heat increases data center cooling demands, which coincides with peak demand on power grids, leading to potential blackouts.
- Cooling accounts for about 40% of data centers' energy use, rising significantly during extreme heat.