Global brokerage group Aon, whose reinsurance solutions team recently designed and developed the first data center-specific treaty, is actively working with other insurers to continue to “innovate and lead” in this “generational opportunity,” President and CEO Greg Case said earlier today.
The opportunities presented by the rapid advancement of digital infrastructure, particularly artificial intelligence, machine learning and hyperscale data centers, have been an extremely hot topic in the re/insurance industry for several months, and this continues into the fourth quarter and full-year 2025 reporting seasons.
This is not surprising given the innovative solutions and huge amounts of capital required to meet the demands of the AI ​​boom, with some forecasts suggesting that as many as 3,000 new data centers will be built over the next five years.
Earlier this month, Aon expanded its proprietary Data Center Lifecycle Insurance Program (DCLP) by $1 billion, or 67%, to $2.5 billion. During today’s conference call, President and CEO Case noted this capacity increase, as well as positive customer stories highlighting Aon’s capabilities in this area, as well as the new data center reinsurance treaty.
He revealed that Aon’s “reinsurance team recently designed and developed the first data center specific treaty, providing a solution to align up to $5 billion of capital through the insurance value chain behind a single leading insurance company. We are actively working with several other companies to help them expand and strengthen their capabilities to serve their clients.”
“Our consulting capabilities in site selection, design and engineering, along with extensive data and advanced analytics, are critical to delivering effective capital protection decisions in the face of extreme weather, supply chain and cyber risks,” Case continued. “While we are still in the early stages of this generational opportunity in the data center, we have already achieved some exciting wins, and our leadership in this space is another factor supporting sustainable organic revenue growth. It is also another impressive example of Aon solving customer problems through innovation.”
On the subsequent call, where management also discussed Aon’s fourth-quarter and full-year 2025 results, an analyst asked Case further about the data center opportunity, which the CEO described as “unique” and “landmark.”
“It also requires a level of responsiveness and sophistication beyond what traditional industries have achieved,” Case said. “Just to be clear on that. It requires really new innovation around alternative forms of capital, how we think about risk, how we mitigate risk, all of that. I want to emphasize that I think we’ll probably build a third or more of the data centers that we have now, and we’re very well positioned and we’re having conversations that others aren’t having. But we’re at the beginning of this process. Process.”
“If you think about it, there are a lot of data centers out there, thousands of them, but when we think about the construction that’s going on right now, last week in Davos, it was one of the main discussion points, which was really this and artificial intelligence and how they come together. The race is just beginning. The opportunity is just beginning.
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Three global insurance and reinsurance brokerage groups, Aon, Marsh and Gallagher, have all discussed the data center opportunity in recent earnings calls, so it’s clear that data centers will be an important growth area for intermediaries as they work to capitalize on the boom in artificial intelligence and digital infrastructure.
