Study finds most data center capacity faces climate risk
Data center climate risk threatens 80% of global capacity with floods, heat, and fire See which markets face the highest exposure and how long-term site risk may shift costs
A new study from climate risk analytics firm First Street says nearly 80% of global data center capacity is exposed to elevated acute climate hazards such as flooding, strong winds, and wildfires.
The report examined 97 data center markets and found that more than half of capacity is also in areas facing chronic climate stress, including extreme heat and drought. The firm said these conditions can affect operating efficiency, raise costs, and increase the risk of downtime.
The findings highlight concerns that investors may rely too heavily on historical models when assessing longterm data center sites, even though these facilities often operate for 20 to 30 years. The study also noted that risk levels vary by region, with AsiaPacific showing the highest exposure and Nordic markets the lowest.