The Fidelis Partnership (TFP) has announced the formation of a new consortium focused on insuring risks related to the construction of artificial intelligence (AI) data centers.
The consortium aims to address a gap in market capacity for excess layers in construction risk, as demand for AI data center insurance grows.
Industry estimates indicate that the AI data center sector could generate billions of dollars in new premiums annually. The consortium, supported by TFP’s risk allocator model, brings together capacity from Fidelis Insurance Group and Fidelis Syndicate 3123, establishing a combined consortium capacity of US$250 million for these risks.
TFP also plans to expand capacity further from January 1, 2026, with the addition of its Blackstone-backed Syndicate 2126.
TFP said the launch of the Construction Consortium, alongside its existing consortiums in Space, ECAT, and Contingency classes, represents a significant increase in available market capacity. The company said that this move demonstrates its ongoing commitment to providing market leadership and unlocking capacity in areas where it is most needed.
Michael Davern (pictured above), UK CUO and group head of D&F property and energy at TFP, said the consortium is being launched at a pivotal time for the AI data center industry.
“The number and size of AI data centers is growing at pace, and it is essential that the right insurance capacity is available to support the construction of what are high complexity and high value projects,” Davern said.
He added that the new capacity will complement TFP’s existing product offerings for data center clients, including Terror, cargo, project finance, surety, renewables, liability, and operational property lines, and will create new opportunities to cross-sell these products to deliver tailored client solutions.
The launch comes as TFP continues to strengthen its leadership team and specialty focus. In May, the company appointed Peter Welton as head of specialty, bringing over two decades of experience from AXA XL and XL Caitlin. Welton’s role centers on expanding TFP’s specialty lines, including aviation, space, and energy re/insurance, with a particular emphasis on renewables.
In addition, TFP has expanded its executive leadership with the recent appointment of Andrew Sleeman as head of investor relations. Sleeman, who has more than 30 years of financial markets experience, is tasked with managing relationships with capital providers and supporting TFP’s growth strategy. His background includes senior roles in asset management and directorships in the banking and cyber reinsurance sectors.
