AI data center boom faces growing threat from severe weather and climate risks
By
April Roach
Summary
The article reports on how the AI boom's rapid expansion of data centers is colliding with a new threat: severe weather driven by climate change. Many data centers are being built in suburban or rural areas with limited historical weather records, leaving billions in assets exposed to flooding, extreme winds, and wildfires. A First Street study found 79% of global data center capacity faces elevated climate hazards, driving up insurance and repair costs while straining power grids during heatwaves.
Source
bskyAI data center boom faces growing threat from severe weather and climate riskscnbc.comKey quotes
· 2 pulledNow we have $3 billion worth of assets with over a mile worth of exposure to these events.
79% of global data center capacity faces elevated risks from acute climate hazards such as flooding, extreme winds, and wildfires that can disrupt operations, increase downtime and drive insurance and repair costs.
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