The BuildApril 3, 2026via Financial Times Technology
Insurers turn to catastrophe bonds to offload data centre risks
Why it matters
The AI infrastructure boom is creating new risk categories that traditional insurance can't handle, forcing the industry to innovate with alternative capital markets. This signals both the massive scale of AI investments and potential systemic risks.
Key signals
- Insurers exploring catastrophe bonds for AI data centre coverage
- Alternative investors being tapped to cover AI mega-projects
- New risk transfer mechanisms emerging for AI infrastructure
The hook
Nobody is talking about catastrophe bonds. But insurers are using them to cover AI data centre mega-projects.
Industry explores raising capital from alternative investors to cover AI mega-projects
Relevance score:78/100