Data centers are at the center of our digital world: critical infrastructure that powers cloud services, online transactions and the ever-expanding digital economy. As organizations accelerate transformation, data center projects are becoming larger, more complex and more urgent. By 2030, US data center construction spending will exceed $112 billion, with project schedules and engineering complexity reaching new heights. But beneath this boom are risks that can derail even the most advanced builds, affecting not only construction, but operations and long-term resilience.
Complexity in all phases: from planning to operation
A modern data center is much more than a warehouse for servers. These facilities are technical marvels, requiring meticulous design, precision commissioning, and robust safety and operational controls from the earliest stages of project planning. The scale and speed of today’s constructions, often exceeding $1 billion in value and involving more than 2,000 skilled professionals, lead to a number of critical risks:
- Extreme Electrical Complexity: Advanced isolation and lockout/tagout controls are required during commissioning and construction.
- Energization by phases: Workers are often exposed to live energy; Strict security controls are non-negotiable.
- Precision cooling and humidity management: Condensation hazards can lead to corrosion, latent defects and costly claims.
- Compressed Timeline: Overlapping operations and accelerated commissioning increase the likelihood of errors and quality control errors.
- Rotation by phases: Delegated design and rapid deployment increase exposure to catastrophic risk and installation errors.
But the risks don’t end when construction ends. Ongoing operations introduce new exposures, from cyber security threats and machinery breakdowns to weather-related incidents and property losses.
The need for early and holistic risk advice
To strengthen resilience in construction and operations, risk management must begin early in project planning and extend seamlessly through commissioning, construction and ongoing operations. This is where risk advisory services from Zurich Resilience Solutions can make a profound difference by addressing risk comprehensively at every stage of the data center lifecycle.
Support projects from inception to ongoing operations
Zurich Resilience Solutions works side-by-side with data center owners, contractors and stakeholders from the early stages of project planning. Our risk engineering team, with decades of data center construction experience, helps customers research not only blueprints, but also their control plans, workforce strategies, and security programs before construction begins. This early partnership allows us to assess practical risk controls, ensuring readiness for what’s to come.
During commissioning and construction, our consultants provide field-level support: standardizing electrical insulation, verifying energization plans and ensuring critical construction safety practices are in place. As the site transitions into operation, our experts continue to guide property risk management, machinery and equipment maintenance, business interruption preparedness and more.
Comprehensive coverage: risk advice beyond construction
Unlike typical insurance solutions that focus exclusively on construction, Zurich Resilience Solutions’ risk advisory services span the entire lifecycle:
- Project planning and implementation: Early hazard identification, workforce qualification and review of critical exposure controls.
- Construction safety: On-site support to manage electrical hazards, fall protection, machinery use and more.
- Property risk management: Strategies to safeguard physical assets against fire, flood and other hazards.
- Business interruption mitigation: Scenario planning and contingency support to limit downtime and losses.
- Cybersecurity and Vulnerability Management: Expert guidance on the protection of technology, data and operating systems.
- Extreme weather risk: Assessments and action plans for floods, hurricanes and severe weather events.
- Maintenance/breakdown of machinery and equipment: Programs to prevent breakdowns and maintain operational resilience.
- Ongoing operational advice: As data centers evolve, our support adapts to manage new threats and optimize business continuity.
This integrated approach is what sets Zurich apart: it helps customers build not just data center facilities, but resilient operations centers that stand the test of time.
Data-driven insights and performance benchmarking
Each engagement is based on Zurich’s extensive data lake, a proprietary platform that powers advanced risk factor classification, trends and benchmarking. Our risk engineers transform raw site observations into actionable intelligence, providing clients with clear performance comparisons to industry peers and targeted improvement recommendations. Customers see where their controls excel and where there are opportunities for improvement, whether in planning, construction or day-to-day operation.
Targeted Risk Improvement Actions (RIAs) mean that customers receive specific and measurable guidance to mitigate exposures at all phases of the operational and construction lifecycle, not just during construction, but continuously as the data center matures.
Our team brings over 20 to 25 years of experience underwriting data center projects, supported by over 100 dedicated construction risk engineers nationwide. These are not generalists, they are specialists with deep technical knowledge, offering advanced guidance at every touchpoint.
Our market-leading approach is also based on strong relationships: trusted clients and brokers, supported by the global Zurich network and recommended by active clients. Specialized energy risk engineering and cyber expertise further enhance our ability to solve critical challenges, safeguarding data center projects from planning to long-term operation.
The Value of Holistic Risk Advisory: Avoiding Downtime, Outages and Repairs
Why does this matter? Because the consequences of unaddressed risks are serious. Minor missteps during construction or commissioning can lead to costly downtime, costly rework, latent defect claims, property loss, cyber attacks and business disruption. Without continuous risk management, organizations can face reputational damage, regulatory interventions or operational failures that affect their entire digital ecosystem.
Zurich Resilience Solutions enables clients to go beyond reactive risk management, transforming uncertainty into resilience. By collaborating early and maintaining comprehensive advice during commissioning, construction and operation, our customers are positioned to avoid disruption, minimize downtime and reduce costly repairs.
Early and integrated involvement means:
- Disturbance avoided: Proactive hazard identification, control validation and continuous education reduce the risk of downtime and accidents before they happen.
- Minimized downtime: Quality control oversight, workforce qualification, and scenario planning help ensure issues are addressed before the data center goes live.
- Reduced rework and correction: Detailed benchmarking and fact-based feedback enable targeted improvements, minimizing the risk of latent defects and defect claims.
- Continuous improvement: Data-driven insights and cross-project benchmarking foster a culture of learning and resilience, empowering customers to lead the market in safety and reliability.
As each data room becomes operational and the facility moves into operational status, risk management remains crucial. Ongoing property and liability management services, powered by Zurich’s risk engineering expertise, help clients scale safely as business needs grow.
Building data centers that thrive
In the world of high-risk data centers, risk has no pause button. Project planning, commissioning, construction and ongoing operation all involve critical exposures that must be managed from start to finish. Zurich Resilience Solutions offers unmatched risk advisory services, covering property, business interruption, cyber, extreme weather, security, machinery maintenance and more, ensuring data centers do more than connect. They thrive.
For data center owners, contractors and stakeholders, bringing in risk specialists from Zurich from the start means access to deep expertise, real-time insights and a holistic strategy for resilience. This is how the world’s most ambitious data center builds succeed, not just on day one, but for years to come.
For more information or to consult with our data center risk advisory team, contact us here.
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By Jen Lamson, Chief Marketing Officer, Zurich Resilience Solutions North America
