AI data centers are causing ‘stress’ not just to tech companies, but also private insurers

AI data centers are reportedly putting new pressure on the insurance industry. According to a CNBC report, experts warn that the rapid growth of these projects is becoming a “stress test” not just for tech companies, but also for private insurers and lenders. Consulting firm McKinsey estimates that global spending on data centers could reach $7 trillion by 2030. As costs rise, tech giants are increasingly relying on private equity, private credit and debt to fund these projects. The scale of investments is creating challenges for insurers.

“When you put $10 to $20 billion plus in a single location, it creates capacity issues in the marketplace,” said Tom Harper, data center leader at insurance broker Gallagher as quoted in the CNBC report.