In a recent press release dated July 27, 2026, Willis Towers Watson PLC (NASDAQ: WTW) has called on data center stakeholders—including owners, developers, and investors—to reevaluate traditional insurance purchasing strategies. As demand for data center capacity soars, approaching an estimated US$15 billion, the company warns that many organizations may be over-insuring due to a lack of clarity surrounding their actual risk exposure. This intricate landscape necessitates a shift towards smarter, data-driven decision-making in insurance procurement.

2. The Importance of Risk and Data in Insurance Decisions

Willis emphasizes that while ample insurance capacity exists within the global marketplace, the key lies in accurately determining how much coverage is genuinely needed based on a thorough understanding of risks throughout the digital infrastructure lifecycle. Alastair Swift, Head of Global Specialties and the Global Digital Infrastructure Group at Willis, stated, "The capacity is there. The focus should be on using data-led analysis to quantify and differentiate exposure to secure appropriate insurance limits."

3. Understanding Digital Infrastructure Risks

The press release outlines that risks related to digital infrastructure extend beyond mere property values. Factors such as site selection, power infrastructure, construction methodologies, and operational resilience play a significant role in shaping risk profiles. Additionally, climate factors and cyber vulnerabilities add layers of complexity that organizations must navigate.

To aid organizations in optimizing their insurance programs and reducing unnecessary expenditures, Willis has developed an eight-point digital infrastructure risk framework. This framework is designed to enhance understanding of risks and instill greater confidence in lenders and investors regarding adequate coverage in alignment with actual exposures.

4. Investing in Resilience for Better Outcomes

One of the standout recommendations from Willis is the importance of resilience investments in improving both insurance and financing outcomes. By proactively assessing natural hazards and climate risks, data center owners can integrate resilience measures into their projects from the outset. Such measures may include flood protection, enhanced wind resistance, seismic design improvements, and wildfire mitigation strategies.

Willis has highlighted that conducting a cost-benefit analysis on these resilience investments can support capital allocation decisions and convey a stronger risk profile to insurers, lenders, and investors. Through this strategic approach, the firm has successfully assisted leading digital infrastructure clients in achieving enhanced credit ratings, improved insurance efficiency, and robust operational continuity planning.

5. Transitioning to Risk-Led Decision-Making

Willis advocates for a paradigm shift from capacity-led buying to a more nuanced, risk and data-led decision-making process. Recommendations for stakeholders include:

Quantifying exposures across the full project lifecycle, including design, construction, and operations.

Modeling realistic loss scenarios rather than adhering strictly to market norms.

Incorporating resilience measures into design from the commencement of project development.

Evaluating dependencies on critical infrastructure such as energy and water systems.

Utilizing robust, verifiable data to substantiate discussions with insurers, lenders, and investors.

Jackie Bolig, Head of Placement and Broking Solutions for North America at Willis, remarked, "As the global digital infrastructure sector scales, clients need a clearer understanding of what they are trying to insure and why." The focus, she emphasizes, should be on acquiring the right amount of insurance informed by analytics and a comprehensive risk assessment, rather than merely seeking the highest available coverage.

6. Conclusion: A Call to Action for Data Center Stakeholders

As the digital infrastructure landscape continues to evolve and expand, Willis Towers Watson's insights serve as a crucial reminder for stakeholders to embrace a more sophisticated approach to insurance buying. With a clearer understanding of risks and a commitment to data-driven decision-making, organizations can enhance their resilience, optimize their insurance strategies, and ultimately secure better financial outcomes.

For more information on Willis’ eight-point digital infrastructure risk framework, interested parties are encouraged to visit wtwco.com/maximize-uptime.

Original press release