Share on LinkedInShare on LinkedIn

ARTICLE · 30 SEPTEMBER 2026

From Sustainability To Supply Chains: Rethinking Data Centre Risk In APAC

Kennedys
Explore more from Kennedys

Asia-Pacific data centre expansion is creating unprecedented insurance challenges as rapid infrastructure growth strains regional water and power resources. Could intensive resource consumption by data centres generate environmental liability claims from affected communities and regulators? And are traditional property insurance models adequately capturing the contingent business interruption risks created by concentrated digital infrastructure dependencies?

AustraliaInsurance
Matt Andrews
Matt Andrews
Author LinkedIn connections

Emerging insurance risks in Asia-Pacific

Asia-Pacific data centre growth is creating two connected insurance questions: whether pressure on water, power and local infrastructure may generate liability exposure, and whether dependency on upstream suppliers and downstream customers is adequately addressed through contingent business interruption cover.

A new risk landscape

Data centres have become some of the most important infrastructure assets in the Asia-Pacific economy. From Sydney and Melbourne to Singapore, Johor, Tokyo and Mumbai, investment is accelerating to support demand for cloud computing and artificial intelligence.

The scale of the opportunity is significant. McKinsey estimates that Asia-Pacific could account for roughly 34% of global data centre demand by 2030. JLL expects 24 GW of additional regional capacity between 2025 and 2030, requiring as much as US$772 billion in capital across real estate, GPUs and networking infrastructure.1

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

AFCA’S New Approach To General Insurance Claims Handling: GICOP Compliance May Not Be Enough

The Australian Financial Complaints Authority has published new guidance clarifying how insurers must handle claims, including strict timeframes and expanded compensation rules. Insurers now face potential liability beyond policy limits for unreasonable delays, and may be required to compensate claimants for non-financial losses. With storm season approaching and complaint volumes rising, these changes create significant operational and financial pressure on the insurance industry.
AustraliaInsurance
Gilchrist Connell
Gilchrist Connell
Article

The Data Centre Boom: Growth, Opportunity And Emerging Risk For The Insurance Industry

Data centres have become critical infrastructure assets in Australia's digital economy, attracting significant investment while facing mounting regulatory scrutiny over energy demands and infrastructure costs. As these facilities expand to meet AI-driven computing needs, they present complex insurance challenges spanning climate exposure, business interruption risk, and cyber vulnerabilities that require careful risk management strategies.
AustraliaInsurance
Kennedys
Kennedys
Article

ASIC Puts Motor Vehicle Premium Transparency Under The Spotlight

ASIC's Report 838 reveals significant transparency gaps in motor vehicle insurance premium communications, finding that renewal documents often fail to explain price changes adequately and that over 30% of consumers who contacted their insurer successfully negotiated lower premiums. The report establishes clear expectations for better practice in pricing disclosures and signals continued regulatory scrutiny of insurance pricing practices.
AustraliaInsurance
Gilchrist Connell
Gilchrist Connell
Article

That Wasn´t Supposed To Be Covered! General Reinsurance Australia Ltd V HIH Casualty & General Insurance Limited (In Liquidation) [2009] NSWCA 22 - A Cautionary Tale For Reinsurers

Reinsurance treaties often employ general language and avoid complicated drafting. A recent decision demonstrates the differences in opinion that may arise between reinsurers and cedants, and the risks faced by reinsurers in relying on vague terminology and appeals to common industry understandings.
AustraliaInsurance
Gadens Lawyers
Gadens Lawyers