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Study: Climate Risk to Data Centers Much Higher Than Thought
Newser • • business
Key Points:
- Nearly 80% of global data center capacity is located in areas vulnerable to short-term climate risks such as floods, high winds, and wildfires, which can disrupt operations and increase costs, according to analysis by climate-risk firm First Street.
- Over half of data centers also face long-term climate stresses like extreme heat and drought, potentially reducing efficiency and raising expenses over their 20- to 30-year lifespans.
- First Street criticizes insurers and investors for relying on outdated historical weather data that fails to capture the increasing severity and frequency of climate risks, emphasizing the need for updated risk models.
- Infrastructure beyond the data centers themselves, including roads and power grids, is also vulnerable, meaning even fortified facilities can become inoperable if surrounding community infrastructure is damaged.
- The Asia-Pacific region has the highest exposure with nearly 90% of data center capacity at risk, while the US and Europe face around 50% exposure; Nordic countries have the lowest risk.
