• Aon is reportedly seeking $10bn of insurance capacity for data centres entering operation and for facilities that are already running
  • The proposed facility would extend Aon's lifecycle insurance approach beyond construction, although its final capacity and terms have not been confirmed

The fact

Aon is reportedly seeking $10 billion of insurance capacity for operating data centres. The publication cited The Insurer, which in turn attributed the information to unnamed sources. The proposed Operational Property Data Center Lifecycle Program would cover projects moving out of Aon's construction programme and into operation, as well as data centres that are already running. Aon has not formally announced the new facility or confirmed that the reported $10 billion target has been placed.

In July, Aon increased its existing Data Center Lifecycle Insurance Program to $5 billion. The programme includes cover for construction, delays to the start of operations, property damage and business interruption, alongside engineering and other risk services. The September report concerns a proposed facility for operating properties rather than another increase to the construction programme. No final premium terms, customer allocations, participating insurers or full policy wording were disclosed in the material reviewed.

The assessment

Insurance needs change as a data centre moves from construction into operation. During the build, the focus includes damage to the project and delays before it can open. Once the facility is running, property damage and interruptions to live operations become part of the risk. A programme that follows a project through that handover could make it easier to arrange continuous cover.

Large campuses can make the transition more complicated because they may open in stages. One part of a site can be serving customers while construction continues elsewhere. Owners would therefore need to know when each part moves from construction cover to operating cover and how the policy treats a campus that is partly complete.

For BTW readers, the reported $10 billion figure shows the scale of capacity Aon is trying to assemble, but it does not tell us how much insurance an individual data centre could obtain. The terms of the programme, the insurers supporting it and the rules for moving projects into operating cover will give a clearer picture of what the facility actually changes.

What to watch

Look for a formal Aon announcement confirming the $10 billion target, participating insurers and eligibility requirements. Details on how projects move from construction into operating cover, particularly at campuses opening in phases, will show how the proposed programme works in practice.