The global data centre insurance market is expected to more than double in value to $US24 billion ($34 billion) by 2030 as investment in artificial intelligence drives one of the largest infrastructure investment cycles in decades, Allianz Commercial says.

“AI is turning the latest generation of data centres from a specialist real estate asset into mission-critical infrastructure,” Allianz Commercial CEO Thomas Lillelund said.

“The scale of investment is extraordinary.”

Annual investment is projected to double from about $US500 billion ($708 billion) in 2024 to more than $US1 trillon ($1.4 trillion) as early as next year, a report by the insurer says.

The US and China are expected to account for about 62% of global capacity additions through 2030, but the next investment wave is becoming increasingly global.

In Europe, Germany, the UK and Ireland are major markets, but faster expansion is expected in Spain, Finland and Denmark, where power availability and permitting conditions can be more favourable.

In Asia-Pacific, excluding China, installed capacity is projected to rise from about 9 gigawatts to more than 28 gigawatts by 2030, with Malaysia to grow more than tenfold.

Allianz says climate resilience is increasingly a strategic consideration. About 79% of data centre capacity is in areas facing heightened natural catastrophe risk, while 54% is exposed to chronic heat and drought stress.

Analysis of data centre-related claims shows fire is the leading driver of loss severity, accounting for well over half of losses. Natural catastrophes rank second, followed by wilful acts including crime and cyberattacks, and power failure.

The data centre risk profile is changing as facilities become larger, more complex and interdependent, Allianz says.

“For insurers, the key question is not only the value of the building, but the concentration of value and dependency inside and around it,” global head of construction claims Christian Kolbe said.

“Power, cooling, batteries, fibre routes, testing and commissioning, and business continuity planning are all part of the same risk picture.”