Data centres could generate $US10 billion ($15 billion) in new premium this year, S&P says.

Digital infrastructure is vital to artificial intelligence and cloud computing, and building data centres involves developers, utility providers, equity investors and lenders – each with their own insurance requirements.

Annual investment in data centres could pass $US300 billion ($450 billion) by 2027, the ratings agency says.

“This represents a huge growth opportunity for the commercial and specialist (re)insurers that participate in these projects.”

But as insurable values reach $US20-$US30 billion ($30-$45 billion) per location, S&P expects capacity constraints to limit the industry’s ability to fully insure “hyperscale” data centre projects.

By comparison, the largest bridge or tunnel projects require coverage limits of about $US10 billion ($15 billion).

“How insurers manage concentration and aggregation risk due to the co-location of high-value assets and the interconnectedness of risks through the presence of multiple stakeholders will be a key consideration in our credit rating analysis,” S&P insurance analyst Charles-Marie Delpuech said.

About 11,000 data centres are in operation worldwide, and S&P estimates a total insurable asset base of more than $US2 trillion ($3 trillion) will grow rapidly.