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Thought Leadership

How parametric insurance is accelerating data center expansion

Source: The Baldwin Group
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Updated: March 31, 2026

As data center development accelerates to meet AI-driven demand, traditional insurance structures are struggling to keep pace. Increasingly complex facilities combining high-density computing, advanced cooling, and onsite power generation are creating new risk profiles that don’t fit neatly into conventional coverage frameworks.

In an interview with Insurance Business Magazine, Paul Brown, Managing Partner at The Baldwin Group, explains how parametric insurance and other alternative risk transfer solutions are filling critical gaps and safeguarding the infrastructure that has quickly become the backbone of economic activity. From covering short-duration power interruptions to supporting project financing through customized structures, these approaches are becoming essential to keeping projects viable.

Critically, when insurance is introduced earlier, structured strategically, and aligned to key development milestones, it can do more than protect assets—it can enable growth.

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