Commercial property insurer FM has increased its capacity for data centre clients to US$5 billion, a move the company says positions it to address growing demand in the digital infrastructure sector.
The expanded limits are available to clients of FM Intellium, the insurer's unit dedicated to data centres and power generation facilities. FM described the capacity as the largest currently available in the data centre insurance market.
The capacity increase comes as data centre construction costs continue to rise. According to an Allianz Commercial report, average-sized facilities now require between US$500 million and US$2 billion to build, with some projects exceeding US$20 billion. Market research suggests up to US$7 trillion will be spent on data centres globally by 2030.
FM Intellium was established last year to address risks associated with artificial intelligence, cloud computing, and related power generation needs. Christopher Dempsey was appointed senior vice president of the unit in October.
The insurer has provided coverage for data centres for more than 25 years. FM currently insures approximately 1,100 data centres with a combined insurable value of US$250 billion.
Malcolm Roberts, chairman and CEO of FM, said the company has a history of working with clients in developing industries.
"For almost two centuries, FM has partnered with clients in growing industries to help them navigate emerging risks and prevent losses before they happen," Roberts said.
Dempsey said the capacity increase reflects expectations for continued expansion in digital infrastructure. He added that insurers must keep pace to ensure this critical industry remains resilient and operational for the communities and businesses it serves.
In November, FM also expanded its resilience credit program from 5% to 10% of eligible in-force premiums, representing an estimated US$825 million in credits.
The program now covers operational resilience beyond climate-related risks, including fire protection and boiler and machinery exposures.
