79% of global data center capacity faces elevated climate risk; First Street study flags infrastructure vulnerability

A First Street climate risk analytics study released June 18 found that 79% of global data center capacity is exposed to acute climate hazards including flooding, extreme winds, and wildfires that can disrupt operations and drive insurance and repair costs. The study analyzed 97 global data center markets. Over half of all data centers are simultaneously exposed to chronic climate stress such as extreme heat and drought, which degrade energy efficiency and raise operational costs.

The Asia-Pacific region shows the highest exposure at 89% of capacity at risk, compared to 50% in the Americas and 46% in Europe, Middle East, and Africa. Fast-growing data center hubs including Northern Virginia, Johor (Malaysia), and Marseille (France) rank among the top-risk markets. The study notes that data centers typically operate for 20–30 years, but investors may not be adequately pricing long-term climate impacts using outdated historical models that do not account for climate change trends.

For architects and operators, this underscores a critical capex and site-selection decision: climate-resilient locations, cooling strategies (closed-loop water systems, air cooling, liquid immersion), and systemic risk assessment beyond building perimeters—including power access, egress, and community infrastructure—will determine cost of ownership, insurance availability, and long-term operational viability. Practitioners should expect climate risk to become a material factor in cloud and AI infrastructure site decisions.