A new report by Allianz Commercial reveals that global spending on data centres could reach several trillion US dollars by 2030, driven by the explosive growth of AI and cloud computing. The US and China are leading this global construction boom, while Europe continues to expand at a steady pace.

According to the report, The Data Center Construction Boom, project costs have risen dramatically — from $200–300 million to more than $20 billion — as developers race to meet surging demand for high-performance computing infrastructure. The average facility now costs between $500 million and $2 billion.

“Such large and complex projects require project-specific insurance policies tailored to their unique risk profiles,” said Darren Tasker, Head of Construction, Americas, Allianz Commercial.

The US accounts for nearly two-thirds of global power demand from data centres, with 81 GW expected by 2028. China’s market is expanding rapidly, with Greater Beijing alone representing about 10 per cent of global hyperscale capacity. Europe, led by London and Dublin, is seeing a 43 per cent annual rise in pipeline activity.

The report notes that growing power demand could outpace grid capacity, with global electricity usage by data centres expected to more than double by 2030, equivalent to Japan’s current consumption. Other risks include fire hazards from lithium-ion batteries, water usage, and cooling challenges in hotter climates.

In Asia Pacific, the data centre market accounts for 30% of global capacity and is expected to grow at 21 per cent CAGR through 2028, with strong momentum in India, Malaysia, and Indonesia.

“All stakeholders must understand and manage the evolving risks — from construction and environmental impact to cybersecurity,” said Christian Sandric, Regional Managing Director, Allianz Commercial Asia. “Specialised insurance and risk management expertise are crucial to supporting this rapid global expansion.”