(Re)in Summary
- A Singapore-based data centre insurance facility is being developed with US$200m in initial capacity.
- MSIG, Gallagher Re, SCOR, Samsung Re and the Cybersecurity Association Singapore are participating in the initiative.
- The facility is expected to cover construction, operational, supply-chain, design and cyber risks across Asia Pacific.
A group of insurers, reinsurers and industry organisations is developing a dedicated data centre insurance facility in Singapore, with US$200m in initial capacity to address growing protection needs across Asia Pacific.
The initiative involves MSIG, Gallagher Re, SCOR, Samsung Re and the Cybersecurity Association Singapore, according to Chee Hong Tat, deputy chairman of the Monetary Authority of Singapore (MAS).
Speaking at the Singapore International Reinsurance Conference (SIRC) on 2 November, Chee said a memorandum of understanding (MOU) would be signed this week to formalise the collaboration among key participants.
The facility is expected to cover construction, operational, supply-chain, design and cyber risks, bringing together underwriting capacity and specialised expertise from participating organisations.
Its initial US$200m capacity is expected to expand over time, with more insurers, reinsurers and other industry partners invited to participate.
The initiative comes as data centre investments accelerate across the region, driven by growing demand for artificial intelligence (AI) and digital infrastructure.
Citing JLL research, Chee said Asia Pacific’s data centre capacity is projected to rise from approximately 32 gigawatts (GW) to 57 GW by 2030.
However, the expansion presents increasingly complex insurance challenges, particularly as high-density computing facilities depend on substantial grid capacity, specialised liquid cooling systems and interconnected supply chains.
Operators also face exposures involving property damage, cyber incidents, operational downtime and contractual obligations, with risk profiles changing as facilities move from construction to operation.
“Today, the insurance solutions and capacity for these risks remain relatively fragmented,” Chee said.
He added that individual insurers may be constrained by the scale and breadth of exposures they can assume, highlighting the need for greater collaboration.
SCOR group CEO Thierry Léger at SIRC also highlighted the capacity challenge, warning that hyperscale AI campuses could carry insurable values of up to US$50bn. In comparison, the industry can currently assemble only around US$15bn in capacity per risk.
Gallagher Re, another participant in the planned facility, launched a dedicated Digital Risk Practice in August to address emerging exposures involving AI and data centres.
The planned facility aims to provide regional project sponsors with access to insurance protection through a single Singapore-based hub.
Chee also emphasised the importance of involving insurers earlier in infrastructure development, allowing their underwriting and risk engineering expertise to inform project design and mitigate risks before construction and operations begin.
