Data centers are the heart of digital infrastructure and require expert guidance to manage the significant risks involved with constructing and operating these critical facilities. The Baldwin Group’s expertise in data center construction and risk management helps ensure that these hubs of connectivity remain secure, efficient, and scalable.
Our services include:
Tailored risk insurance design for construction: Protect your business against potential property damage with builder’s risk insurance, as well as liability insurance for third-party claims during construction.
Operational risk management: Once operational, data centers face additional risks, from equipment failure to cyberattacks. We provide comprehensive coverage to help protect against business interruption, cybersecurity threats, and equipment breakdown.
Ongoing monitoring and compliance: Regular risk assessments and compliance audits help ensure that your data center continues to operate at peak efficiency, while mitigating potential vulnerabilities.
Convergence of AI, data centers, and renewable energy presents trillion-dollar investment opportunity
The convergence of AI, data centers, and renewable energy presents a trillion-dollar investment opportunity. Data centers, essential for powering AI operations, are energy-intensive, contributing to global emissions. By integrating renewable energy sources, like solar and wind, data centers can drastically reduce their carbon footprint, aligning with global sustainability goals. AI can optimize energy consumption in real-time, helping to enhance efficiency and lower costs. As AI continues to drive technological advancements, the demand for energy-efficient data centers will surge. Companies investing in AI-driven renewable energy solutions are well-positioned to capitalize on this growing, eco-friendly market, potentially unlocking massive economic growth.
With growth comes additional insurance and risk management needs that must be considered. It’s important to partner with the right insurance advisory team to help protect your business and its people. The Baldwin Group is ready to help owner operators and investors find the best solutions for your needs.
Insurance requirements for AI, data centers and renewable energy construction and operation typically include property insurance, liability insurance, workers’ compensation, and business interruption coverage. Cybersecurity insurance is crucial for AI data centers due to data risks, while renewable energy projects may need environmental liability, equipment breakdown, and performance guarantees coverage.
ITC risk and data centers
The Baldwin Group is helping clients manage ITC risk as it increasingly enters the Digital Infrastructure ecosystem. Data centers adopting renewable energy can benefit from tax credits, typically under programs like the U.S. Investment Tax Credit (ITC) and Production Tax Credit (PTC). These incentives encourage renewable energy investments by reducing upfront costs. However, data center operators must assess certain risks when integrating renewable energy, such as intermittent power supply and infrastructure compatibility.
To help mitigate risks, data centers often require insurance coverage for equipment failure, business interruption, and regulatory compliance. Additionally, specific insurance requirements may include coverage for solar panels, wind turbines, and storage systems. The transition to renewable energy also demands adherence to regulatory standards and energy efficiency certifications, helping ensure long-term viability and resilience in a competitive market.
Global expertise, local execution
With decades of experience across diverse industries, The Baldwin Group has built a reputation for delivering digital infrastructure solutions that are not only robust but highly tailored to the specific needs of our clients. We combine global insights with local execution, helping ensure that our clients benefit from the best of both worlds: world-class strategies and local market expertise.
Unlock the full potential of your assets/operations with the insurance experience, cutting-edge technology, and specialty expertise that The Baldwin Group’s Digital Infrastructure Practice can bring to your business.
For more information
We’re ready to help when you are. Get in touch and one of our experienced Baldwin advisors will reach out to have a conversation about your business or individual needs and goals, then make a plan to map your path to the possible.
This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The content of this document is made available on an “as is” basis, without warranty of any kind. The Baldwin Insurance Group Holdings, LLC (“The Baldwin Group”), its affiliates, and subsidiaries do not guarantee that this information is, or can be relied on for, compliance with any law or regulation, assurance against preventable losses, or freedom from legal liability. This publication is not intended to be legal, underwriting, or any other type of professional advice. The Baldwin Group does not guarantee any particular outcome and makes no commitment to update any information herein or remove any items that are no longer accurate or complete. Furthermore, The Baldwin Group does not assume any liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Persons requiring advice should always consult an independent adviser.
