Majority of datacenters are vulnerable to climate threats like floods and fires, study finds

2026-06-23 · Source: AI (artificial intelligence) | The Guardian · Field: Technology & Digital — Cloud Computing & IT Infrastructure, Artificial Intelligence & Machine Learning · Depth: Fundamental Awareness, short

Summary

A new report by climate risk analytics firm First Street reveals that nearly 80% of global datacenters are exposed to extreme climate hazards, including flooding, extreme winds, and wildfires. Additionally, 54% of datacenter markets worldwide face chronic risks like extreme heat and drought. These vulnerabilities lead to disrupted operations, increased downtime, and higher insurance and repair costs. The study highlights that current datacenter valuation models often prioritize growth over climate considerations, relying on historical data that no longer accurately predicts risk. Geographically, the Americas dominate with 86% of capacity in elevated-risk markets for acute threats, while the Asian-Pacific market shows 89% exposure to heat and drought. Notably, rapidly expanding datacenter markets, such as northern Virginia and Johor, Malaysia, are often located in high-risk areas, indicating that scale is being built where operating conditions are hardest. This trend exacerbates the issue, as datacenters not only contribute to greenhouse gas emissions but also compete for vital resources like water in stressed regions.

Key takeaway

For Directors of AI/ML or IT Professionals planning new datacenter investments, this report underscores the critical need to integrate advanced climate risk analytics into site selection. Your traditional valuation models, relying on historical data, are likely underestimating future operational costs and service disruptions from floods, fires, and droughts. Prioritize locations with lower acute and chronic climate exposure to ensure long-term reliability and avoid escalating insurance and repair expenses. Consider the broader community impact regarding power and water resources.

Key insights

The majority of global datacenters are highly vulnerable to escalating climate hazards, a risk often underestimated in current investment and operational planning.

Principles

• Climate risk significantly impacts datacenter operational costs.
• Historical climate data is insufficient for future risk assessment.
• Location choice dictates long-term datacenter reliability.

Method

The article describes a study that examined 97 global datacenter markets to assess exposure to acute and chronic climate risks, using updated climate risk analytics rather than historical data for valuation.

In practice

• Re-evaluate datacenter location strategies.
• Incorporate forward-looking climate models.
• Assess regional resource competition (water, power).

Topics

• Datacenter Vulnerability
• Climate Risk Analytics
• Site Selection
• Extreme Weather Events
• Greenhouse Gas Emissions
• Infrastructure Resilience

Best for: CTO, VP of Engineering/Data, Executive, Director of AI/ML, IT Professional, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI (artificial intelligence) | The Guardian.