79% of global data centers face climate risks, Asia-Pacific hit hardest

A study by climate risk firm First Street shows that 79% of global data center capacity is exposed to sudden disasters like floods, strong winds, and wildfires. These events can disrupt operations, increase downtime, and raise insurance and repair costs. The research covers 97 data center markets worldwide, with Asia-Pacific being the riskiest region at 89%, followed by the Americas at 50%, and Europe, the Middle East, and Africa at 46%.

Besides sudden disasters, over half of data centers are in areas prone to extreme heat and drought. These long-term climate pressures reduce energy efficiency and drive up costs. First Street's chief economist Jeremy Porter says most models rely on past data and underestimate climate change impacts. Data centers typically operate for 20-30 years, so short-term assessments miss the full lifecycle risks.

Porter suggests developers can strengthen buildings to improve resilience, but infrastructure like power and transport is more critical. Most of the top 10 riskiest markets are in the U.S., facing high wind and flood risks, though the U.S. has relatively lower long-term climate pressure compared to other regions.