What is being insured
The building is often the smaller part of the value. Inside it are server and networking equipment, power distribution, uninterruptible power supplies, generators, chillers and the controls that run them. An AI data center concentrates even more value into each square foot, since a modern GPU rack draws far more power than a traditional enterprise rack. Uptime Institute reports peak draw of around 132 kilowatts for a current Nvidia GB200 NVL72 rack, roughly sixteen times a typical enterprise rack.
Valuation and limits
A policy is only as useful as its limits, and limits depend on valuation. Insured values should reflect the cost to replace equipment at current prices, including long lead time items such as transformers and switchgear, and not the depreciated book value. Risk and Insurance has reported that the average insured data center project value has grown from about 150 million dollars to as much as 3 billion over five years, which shows how quickly values can outrun a program that is not revisited.
Common exclusions and sublimits
Standard commercial property forms were not written with data centers in mind, and several features of them deserve attention. Review each of these against the actual wording.
- Sublimits for electronic data, media and computer equipment.
- Limits or conditions on flood, earthquake and named storm.
- Exclusions for electrical or mechanical breakdown, which is why equipment breakdown cover is usually bought separately.
- Waiting periods and conditions on utility service interruption.
- Conditions on fire protection and maintenance systems.
Working with the market
Because capacity for large technology infrastructure is tight, a placement usually involves several insurers, and carriers differ in how they treat high density and liquid cooled facilities. A broker who understands the engineering can present the facility's power, cooling, fire suppression and resilience clearly, which is often what separates a placement that closes from one that stalls.
Last updated October 22, 2026. Written by the Alton Risk placement team.