The speed of data center growth: intensified risks
Data centers are a backbone of daily life. Banking, hospitals, media, manufacturing and national security—they all depend on reliable and resilient data centers. Meanwhile, rapid advances in artificial intelligence (AI) are stoking huge demand for AI-ready data centers. By some estimates, we'll see an 8.1% compound annual growth rate (CAGR) in data center construction through 2030.
That’s why it’s so urgent to build resilience into this essential infrastructure, which supports our daily lives and connects the world. The tremendous demand for new data centers is complicated by the race for available land, and with it the potential exposure to hazards inherent in both site selection and construction design. Whether for new construction or a preexisting facility, it’s critical to identify and mitigate the vulnerabilities that could lead to catastrophic damage and business interruption.
We see risks others can’t
FM can address these challenges by partnering with you to navigate the huge opportunities and fast-evolving risks. Our legacy is engineering, science and research. For decades, our growth has paralleled that of every important emerging technology. Today, our digital portfolio spans the full arc of technology businesses, from semiconductors advanced manufacturing to enterprise software and AI. Scientists and engineers are building the data center sector. Scientists and engineers built FM. It’s this shared perspective that makes FM an ideal and strategic insurance partner for the data center industry.
New technologies to shield, old vulnerabilities to uncover
With rising demand for cloud services and AI workflows, data centers face the primary challenges of sufficient cooling and power, with the latter currently representing approximately 3% of the world’s power consumption and rising. For new construction, the availability of nearby access to reliable power and water for cooling is a growing barrier. Both needs carry their own vulnerabilities, ranging from inappropriate construction materials and design standards to reduced resilience for electrical and cooling systems. It's crucial to identify single points of failure and exposures unique to your data center.
The earlier you engage FM, the better, particularly at the site selection and construction design phase. Our engineering-led approach works in partnership with your construction and design teams to identify factors such as flood risk and recommend solutions from grading to flood walls. The same is true of placing your back-up power systems, such as diesel generators and any battery energy storage systems, ensuring they are a sufficient distance from your main operations in the event of fire. We can work with you to specify construction materials and protection systems that are designed to incorporate FM Approved products, ensuring appropriate performance and reliability is achieved.
Inside, our engineers understand the critical functionality and design of data center cooling systems, including: conventional air conditioning using CRAC units, more complex fanwalls, as well as the latest liquid cooling systems, direct to chip, rear door cooling and immersion systems. We examine every facet, from continuous cooling capacity backup systems to single points of failure and assess those against natural risks such as prolonged heat waves. We also evaluate your operating procedures and emergency response systems to minimize other potential hazards, such as human error, naturally occurring contaminants, smoke and other factors that can damage servers and interrupt operations.
The certifications and backing of the FM Research Campus
Our engineering recommendations are backed by the scientific rigor of FM researchers, who test products and processes for safety across four major labs: fire technology, natural hazards, electrical hazards and water management. For data centers, our testing of equipment, such as lithium-ion UPS systems, off-gassing detection systems and construction materials for hot and cold aisle containment systems spans all of these areas of critical research.
We are the foremost center devoted to preventing physical threats from turning into real-life catastrophes. Our standards are recognized by the world’s leading regulatory authorities, and FM certifications are highly sought after by virtually every kind of industrial manufacturer. So, while new risks will evolve with new waves of data center technology, so will FM research and the knowledge that our field engineers bring to your operations.
From prevention to protection, we are fully aligned with your interests
When it comes to hazards and risk, the commercial insurance industry is playing catch-up to the meteoric growth of data centers. But FM is ready. We understand what you’ve got on the line. Millions of dollars in technology. Millions in property. Millions in potential damages from service interruption and to reputation. FM is uniquely positioned to deliver the resilience engineering you need to mitigate the risks of rapid change and new technologies that are unique to your business—safely and reliably—so you can deliver the uninterrupted service your clients and the world depend on.
The FM advantage
At FM we protect our clients with the guiding belief and experience that the majority of loss is preventable. It’s what our science and research reflect and enable. It’s how our engineers identify risks and guide you with unparalleled advice and proven mitigation strategies. It’s also at the heart of our business structure as a mutual insurer that is as motivated as you are to ensure your complete business resilience and protect your operations and reputation.
