What's Happening?
FM, a commercial property insurer, has announced an increase in its insurance capacity for data centers to $5 billion. This move is aimed at supporting its global FM Intellium clients and the broader data and power
generation ecosystem. FM Intellium, launched last year, focuses on helping businesses navigate technological advancements such as artificial intelligence and cloud computing. The company has been insuring data centers for over 25 years and currently protects around 1,100 centers with a total insurable value of $250 billion. The increased capacity is part of FM's strategy to support the growing demand for digital infrastructure.
Why It's Important?
The expansion of insurance capacity by FM reflects the critical role of data centers in the modern economy, particularly as reliance on digital infrastructure grows. As technologies like AI and cloud computing continue to evolve, the need for robust insurance solutions becomes more pressing. FM's decision to increase its capacity underscores the importance of ensuring that data centers remain resilient and operational, which is vital for the businesses and communities they serve. This move also highlights the insurance industry's need to adapt to the changing technological landscape and the associated risks.
