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Jun 23, 2026
Analyzed by GPT OSS 120B

Study Finds 80% of Global Datacenters Exposed to Floods, Fires and Heat Risks

AI Summary
A First Street report reveals that nearly four‑fifths of the world’s datacenters sit in zones vulnerable to extreme flooding, wildfires, wind and chronic heat or drought. The findings raise urgent questions about site selection, insurance costs and the reliability of digital services.

Key Findings: Majority of Datacenters Face Acute and Chronic Climate Hazards

The new First Street analysis shows that ~80% of global datacenter capacity is located in regions exposed to severe climate events such as floods, extreme winds and wildfires. Chronic stressors—heat, drought and water scarcity—affect 54% of markets, threatening operational continuity and raising insurance premiums.

Geographic Distribution of Acute Climate Risks Revealed

Regional breakdown highlights stark contrasts:

  • Americas: 86% of capacity sits in elevated‑risk markets.
  • Asia‑Pacific: 60% of datacenters face acute hazards, but 89% are vulnerable to heat and drought.
  • Europe, Middle East & Africa: 25% of capacity in high‑risk zones.

In the United States, the Carolinas, Atlanta, the New York‑New Jersey corridor and northern Virginia rank among the ten most exposed regions.

Quantifying Exposure: Numbers Behind the Vulnerability

  • 97 global datacenter markets examined.
  • 50% of U.S. datacenters and 46% of those in EMEA are exposed to acute and chronic threats.
  • Swiss Re’s parallel study confirms rising placement of new facilities in hail‑ and tornado‑prone zones.

Implications for Digital Infrastructure, Insurance and Service Reliability

Location‑driven climate risk translates into higher operational costs—cooling, water use and reliability—all of which influence long‑term profitability. Outdated underwriting models that rely on historical climate data underestimate true exposure, potentially inflating insurance gaps. Service disruptions at a single hub can cascade across dependent businesses and consumers, amplifying societal impact.

Future Outlook: Rethinking Site Selection and Risk Modeling

Experts like Jeremy Porter, chief economist at First Street, argue that climate must move from a “secondary concern” to a core criterion in datacenter valuation. Investment decisions will need to incorporate forward‑looking climate scenarios, and insurers are likely to tighten underwriting standards. Without a shift in planning, the rapid expansion of digital infrastructure could increasingly clash with escalating climate volatility.