Marsh: Insurance Facility for Data Centre Projects Launches
Leading risk advisor and insurance broker Marsh has announced the launch of Nimbus, a brand-new insurance facility providing its clients with comprehensive cover for large-scale data centre construction across the UK and Europe.
Rising demand
The launch of Nimbus responds to a surge in data centre construction projects across the region, as tech companies strive to meet increasing demand for more storage and processing power.
The facility – backed by a panel of insurers from Lloyd’s and company markets in London and Europe – combines traditional construction all-risks, property damage, delay in start-up and business interruption cover. Nimbus provides up to €1bn ($1.16bn) in construction all-risks coverage and up to €350m ($404m) additional cover for delay in start-up.
Enhancing client access to bespoke coverage
With Nimbus, Marsh clients have streamlined access to specialised coverage from A-rated carriers offering optimal terms and conditions, enabling them to command their critical assets more efficiently and confidently.
Kelly Looney, UK CEO, Construction, Infrastructure & Surety, Marsh Specialty, says: “Data centres are fast becoming the fourth utility and are the engine rooms of the global economy. Given the crucial role they now play in telecommunications, computer systems and data storage, it is essential that their construction is completed on time and on budget.
“Marsh is committed to enabling the technology sector to meet growing demand for data centre infrastructure; Nimbus provides clients with project-specific coverage via a streamlined process that expedites the delivery of data centre construction projects and ensures a seamless transition to operational readiness.”
Data centres: booming service provision
This latest development comes off the back of Marsh recently announcing the launch of its Data Centre Insurance and Risk Management Services.
The recent launch addresses the unique challenges data centre operators and related sectors face, providing risk management and insurance solutions for global clients throughout the lifecycle of data centre operations.
With the Data Centre Insurance and Risk Management Services, Marsh recognises how data centres are now classified as critical national infrastructure. The dedicated team of specialists behind the services guides clients from initial project development and financing to construction and ongoing operational activities.
Bigger picture: mega trends in the data centre industry
Data centres have evolved into in-demand assets for many investors, operators and builders – a trend expected to continue, influencing the data centre market and the technologies behind it for many years to come.
According to Marsh, these are the trends to watch in the data centre industry:
- Market growth: Exponential growth in data generation is fuelling a corresponding increase in demand for more, higher capacity data centres.
- Sustainability: Meeting net zero goals will become increasingly difficult and expensive to achieve, so the role of data centres will only rise in importance.
- Supply chain disruption: Issues in the construction industry and extended project timelines due to logistics delays and power distribution constraints are hindering access to key components for data centre projects.
- Rise of artificial intelligence: AI initiatives and investment-driven development are catalysing a need for scalable infrastructure – including data centres – to support their development and growth.
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