AI data center boom faces growing threat from climate-driven severe weather
By
April Roach
Summary
The article examines how the rapid expansion of AI data centers is colliding with the growing threat of severe weather driven by climate change. Data centers are increasingly located in suburban or rural areas where land is cheaper but extreme weather records are limited, putting billions of dollars in assets at risk. A study by First Street found that 79% of global data center capacity faces elevated risks from acute climate hazards like flooding, extreme winds, and wildfires, which can disrupt operations, increase downtime, and drive up insurance and repair costs.
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Key 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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