Data Centre Operators Face Escalating War and Liability Risks

The scale of digital infrastructure growth has drawn intense scrutiny from both regulators and local communities. Legal challenges against operators have more than tripled since 2021, driven largely by disputes over noise, water consumption, and diesel generator emissions. In the UK, regulator Ofgem has expressed concern that speculative projects are now congesting the national electricity grid, further complicating the planning landscape for developers across Europe.

Geopolitical instability presents a more existential threat. By 2025, the volume of data centre space situated within 15 kilometres of active conflict zones reached 60 per cent of the total recorded over the preceding five years. This vulnerability was underscored earlier this year when Iranian drones struck five commercial facilities in the UAE and Bahrain, marking the first instances of deliberate wartime targeting of such infrastructure.

Edward Howland Jackson, chief commercial officer at Howden, noted that the convergence of cyber and physical threats is blurring traditional insurance boundaries. To maintain resilience, operators must move beyond standard coverage and conduct rigorous, integrated risk assessments that account for the increasingly volatile environments in which they operate.