In a recent virtual briefing, Brandan Holmes, Senior Credit Officer at Moody’s, highlighted the intricate balance of risks and opportunities posed by data centres in the insurance and reinsurance industries. He pointed out the challenges insurers face in accurately assessing these risks, stemming from limited historical data and the rapid obsolescence of technology. With the high value of equipment and the vulnerability to weather events, data centres represent both a promising investment—expected to draw nearly $3 trillion over the next five years—and a significant liability, particularly for those exceeding $10 billion. Holmes is optimistic about the industry’s capacity to adapt, noting emerging collaborations among insurers and the potential for alternative reinsurance capital to increase coverage. Industry reports suggest insurance premiums could soar to $130 billion in this timeframe. Source and details of the news