Willis Unveils Comprehensive Risk Framework for Data Center Industry
February 2, 2026
As data centers evolve from technical facilities into the critical backbone of the global digital economy, powering everything from artificial intelligence to financial markets, the nature of the risks they face has grown exponentially more complex and interconnected. In response to this fundamental shift, Willis, a WTW business, has launched a new, holistic risk management framework specifically designed for the data center sector. The framework, developed in collaboration with five of the world's ten largest data center owners and developers, moves beyond traditional insurance products. It is structured to address risks across the entire asset lifecycle—from construction and commissioning to long-term operations. The model tackles a spectrum of challenges, including operational disruption from outages or natural disasters, cyber threats like ransomware, supply chain vulnerabilities, legal and regulatory exposures, and systemic issues tied to geopolitics and AI-driven demand. A particularly acute focus is on energy risk, where Willis leverages in-house expertise across traditional, renewable, and nuclear power—including Small Modular Reactors (SMRs)—to advise clients on securing reliable power for their facilities. The initiative comes at a pivotal time. While the global data center insurance market is projected to generate approximately $10 billion in premiums this year, industry leaders argue that potential exposures now far outstrip what conventional policies can cover. Willis has already secured over $3 billion in insurance capacity for hyperscale development projects, underscoring the scale of the market need. The firm plans to expand its team with new hires to support its growing client base and delivery capacity. George Haitsch, North America Technology, Media and Telecoms Industry Leader at Willis, emphasized the necessity for a tailored approach, stating, “Data centers have become a critical part of the global supply chain and with that evolution, they face a growing list of complex and integrated risks. A ‘one-size-fits-all' approach is no longer a viable option.” Echoing this sentiment, Bill Creedon, Chairman of Willis Global Construction, noted, “The sector’s unprecedented pace of growth is making risk more systemic, more interconnected and more material. These exposures extend well beyond the technology sector and demand a fundamentally different approach.” The launch of this framework signals a broader industry transition towards integrated risk management. It reflects a growing recognition that for an infrastructure asset now deemed as vital as utilities or transportation, mitigating risk must be embedded from the earliest design stages, not merely addressed through transactional insurance placements after construction is complete.
Source: datacentremagazine
