Data centres, the critical infrastructure behind the world’s digital economy, face mounting risks from climate change, according to a new report by the Cross Dependency Initiative (XDI). The study, released on Sunday, reveals that rising climate-related threats like flooding, wildfires, and tropical storms could cause billions of dollars in damages if operators fail to take urgent adaptation measures.
XDI Analyses Nearly 9,000 Data Centres Globally
The report, billed as the most comprehensive climate risk assessment for data centres to date, analysed almost 9,000 data centres worldwide, including both operational and planned facilities.
Key climate hazards identified in the report include:
- Flooding
- Forest fires
- Tropical cyclones
- Coastal inundation
While Sub-Saharan Africa shows lower overall risk, fast-growing hubs like Lagos and Nairobi are projected to experience exponential growth in climate-related damages toward the end of the century.
“Silent Engine” of the Global Economy at Risk
“Data centres are the silent engine of the global economy. But as extreme weather events become more frequent and severe, the physical structures underpinning our digital world are increasingly vulnerable,” said Dr. Karl Mallon, founder of XDI.
According to the report, insurance costs for data centres could triple or quadruple by 2050 without decisive resilience measures.
Already, more than 1 in 10 data centres in the Asia-Pacific (APAC) region are at high climate risk, with that figure expected to rise to 1 in 8 by mid-century.
Investment in Resilience Could Save Billions
The report emphasises that targeted investments in resilience, such as:
- Improved site design
- Physical reinforcements
- Climate-adapted construction techniques
— could save billions annually in damages and insurance costs.
It introduces a world-first quantitative framework for evaluating how such adaptations reduce risk.
Most Exposed Global Data Centre Hubs
According to XDI’s findings, these major data centre hubs are among the most exposed by 2050:
- New Jersey, USA
- Hamburg, Germany
- Shanghai, China
- Tokyo, Japan
- Hong Kong
- Moskva, Russia
- Bangkok, Thailand
- Hovestaden, Denmark
The report notes stark risk variations even within the same city due to factors like:
- Elevation
- Drainage systems
- Proximity to hazard zones
Why Structural Resilience Alone Isn’t Enough
While physical adaptations can reduce some risks, XDI stresses that “The most resilient data centre still relies on power lines, cooling systems, and transport routes that may not withstand worsening climate impacts,” according to Mallon.
The report urges:
- Operators
- Investors
- Governments
To prioritise both climate resilience and decarbonisation efforts to safeguard not just data centres, but the broader digital and economic systems they support.
Conclusion
As climate change accelerates, global data centres are becoming increasingly vulnerable. XDI’s report highlights the urgent need for resilience planning alongside emissions reduction.
For more updates on data centre climate risks and tech industry insights, subscribe to our newsletter or follow our blog.
