Resilience Instruments for the Data Centre Economy
Data centres are becoming a major infrastructure asset class, and financial institutions are increasing exposure through lending, investing and underwriting. The growth of cloud computing and AI infrastructure presents a financing opportunity. This opportunity is coupled with resilience related risks such as climate exposure, energy constraints and operational disruption that traditional underwriting and valuation frameworks may not capture. For banks, insurers, private credit funds and institutional investors, managing this exposure becomes a matter of importance to protect cash flows, asset value and insurability of the investment. Annual investment in data centres is projected to double from around US $500 billion in 2024 to more than US $1 trillion as early as 2027. A major share of the expansion is moving towards the Asia Pacific, with overall capacity (excluding China), projected to increase from around 9GW, to more than 28GW by 2030.