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 expanding
data and power generation ecosystem. FM Intellium, launched last year, focuses on helping businesses manage risks associated with 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 data centers, representing $250 billion in insurable value.
Why It's Important?
The increase in insurance capacity reflects the growing importance of data centers in the digital economy. As demand for digital infrastructure rises, driven by advancements in AI and cloud computing, the need for robust insurance solutions becomes critical. FM's decision to expand its capacity underscores the industry's reliance on data centers and the necessity to protect these assets from potential risks. This move also highlights the role of insurers in ensuring the resilience and operational continuity of the data center industry, which is vital for businesses and communities.
