Facing the Storm: Climate-Related Risks for Data Centres

Facing the Storm: Climate-Related Risks for Data Centres and How to Adapt

Introduction

Our digital world depends on data centres. These hidden infrastructures power everything from banking and cloud storage to critical emergency services. Yet many facilities were designed for yesterday’s weather. As climate patterns intensify, operators face new threats that challenge the resilience of these assets. The 2025 Global Data Centre Physical Climate Risk and Adaptation Report analysed nearly 9,000 data centres worldwide and concluded that climate risks are already affecting viability. This post explores the emerging climate risks and provides strategies for protecting and future-proofing data centres.

Changing Climate, Rising Threats

• Extreme weather is no longer an outlier. Flooding, tropical cyclones, extreme wind and forest fires can inundate equipment, cut power and sever connectivity. Many data centres are located in low-lying or coastal zones vulnerable to rising sea levels and storm surge. High winds and fires can damage infrastructure and disrupt access.

• Infrastructure built on historic patterns. Older sites were designed for past climatic conditions. Insurance costs are rising, and obtaining coverage is harder because climate-exposed sites are seen as stranded assets.

• Regional variation in risk. The XDI report classifies data centres as high, moderate or low risk based on eight climate hazards and emphasises that risk increases over time.

  
  

Strategies for Climate‑Resilient Data Centres

• Holistic site selection and diversification

Avoid high-risk locations (e.g., flood plains) and diversify across regions. Governments increasingly offer incentives for new sites, but operators must balance incentives with exposure to natural disasters and strict data sovereignty laws pwc.com.

Choose higher elevations or inland sites; evaluate proximity to reliable energy sources (hydro, nuclear) to reduce dependency on vulnerable grids.

• Hardening and adaptation

  1. Structural upgrades: Elevate critical equipment above flood levels, install flood barriers and design buildings to withstand high winds and temperature swings.

  2. Fire mitigation: Clear vegetation around facilities, install fire-resistant materials and use automatic suppression systems. Establish emergency access routes so that fire or wind damage doesn’t isolate the site.

  3. Cooling resilience: Adopt liquid or immersion cooling to handle high chip wattages and maintain operations during heat waves; two-phase immersion cooling removes up to 98 % of IT heat load and can reduce building size by 61 % while saving energy and water upsite.com.

• Microgrids and renewable energy

  • Build or integrate microgrids that combine solar, wind, battery storage or natural gas to ensure continuous power during grid failures. Microgrids provide independence from central grids and can even sell surplus power back during peak demand.

  • Implement on-site renewable generation to align with sustainability goals and reduce reliance on fossil fuels.

• Scenario modelling and insurance

• Use data-driven climate risk models to project hazard exposure and plan adaptation investments. Scenario modelling helps justify capital expenditure and informs insurance negotiations.

• Engage insurers early to understand coverage limitations and consider risk‑transfer instruments tailored to climate.

Conclusion

Climate change transforms data centre planning from an engineering challenge into a strategic imperative. By integrating climate risk assessments into site selection, investing in resilient design and embracing microgrids and renewable energy, operators can protect critical infrastructure and maintain service continuity. Investing now not only safeguards operations but also reduces insurance costs and positions operators as responsible stewards in a climate-constrained world.

References

Aon (2025) The AI Data Center Boom: Strategies for Sustainable Growth and Risk Management. Aon, 20 January. Available at: https://www.aon.com/en/insights/articles/the-ai-data-center-boom-strategies-for-sustainable-growth-and-risk-management (Accessed: 5 September 2025).

Robb, D. (2024) ‘Exploring immersion cooling – Part 1: the advantages’, Upsite blog, 8 May. Available at: https://www.upsite.com/blog/exploring-immersion-cooling-part-1-the-advantages/ (Accessed: 5 September 2025).

Swentek, S. (2025) ‘Three ways data centres can solve for energy independence’, Fast Company Executive Board, 7 May. Available at: https://www.fastcompany.com/91327260/three-ways-data-centers-can-solve-for-energy-independence (Accessed: 5 September 2025).

XDI (Cross Dependency Initiative) (2025) 2025 Global Data Centre Physical Climate Risk and Adaptation Report. July. Available at: https://imgs.mongabay.com/wp-content/uploads/sites/30/2025/07/28113617/Final-Report-Global-data-centre-climate-risk-and-adaptation-report-2.pdf (Accessed: 5 September 2025).

PwC (2025) Data centers at the crossroads of technology and resilience. PwC. Available at: https://www.pwc.com/us/en/industries/tmt/library/hyperscale-data-center.html (Accessed: 5 September 2025).