Key facts
- Nearly 80% of datacenters worldwide are exposed to extreme climate hazards such as floods, high winds, and wildfires.
- Chronic climate risks like extreme heat and drought affect 54% of global datacenter markets.
- The Americas region holds 86% of datacenter capacity in markets with elevated risks from floods, wind, and wildfires.
- The Asia-Pacific region is most vulnerable to heat and drought, with 89% of its datacenter markets exposed.
- Key US regions including the Carolinas, Atlanta, New York-New Jersey, and northern Virginia are among the top 10 most exposed to acute and chronic climate threats.
- A significant portion of new datacenters are being built in locations with challenging operating conditions and high climate risk.
A new report from climate risk analytics firm First Street indicates that nearly 80% of the world's datacenters are vulnerable to extreme climate hazards, including floods, high winds, and wildfires. These risks can lead to operational disruptions, increased downtime, and higher insurance and repair costs.
The study, which examined 97 global datacenter markets, found that chronic climate risks such as extreme heat and drought affect 54% of these markets. The report emphasizes that current underwriting practices often rely on historical data, which is becoming insufficient as the climate changes.
Geographically, the Americas region accounts for 86% of datacenter capacity in markets with elevated risks from acute climate events like floods, wind, and wildfires. In contrast, the Asia-Pacific region faces the highest vulnerability to heat and drought, with 89% of its datacenter markets exposed. Approximately 50% of US datacenters and 46% in Europe, the Middle East, and Africa are vulnerable to heat and drought.
Several rapidly growing datacenter hubs, including regions in the US like northern Virginia and the New York-New Jersey area, as well as Johor in Malaysia and Marseille in France, are identified as highly vulnerable. This trend suggests that significant infrastructure is being built in areas with challenging operating conditions.
The findings add to growing concerns that datacenters, while powering the AI boom, are also susceptible to the climate impacts they help to fuel. The report highlights that disruptions within datacenters can have far-reaching consequences, affecting essential digital services and competing with local communities for critical resources like power and water.
