Marsh, the insurance broker and risk advisor part of Marsh McLennan, has launched its Global Digital Infrastructure Contracts Advisory Group to help clients manage and streamline strategic services contracts throughout the lifecycle of their digital infrastructure assets.
The digital infrastructure ecosystem includes data centers, fiber optic and wireless networks, AI/cloud platforms and their service providers, relying on numerous contracts such as service level agreements and power purchase agreements.
These documents contain specific provisions related to insurance and contractual risk transfer. The scale of these businesses and rapid revolutions in technology have increased the complexity of these agreements, making their review and management a time-consuming process.
Improper contract management can delay operations and expose the organization to significant financial, legal and operational risks.
The broker emphasized that Marsh’s new Digital Infrastructure Contracts Advisory Group, made up of former contract lawyers, risk managers and insurance experts, is well-positioned to alleviate this burden.
The team provides comprehensive support for contract review and negotiation throughout the acquisition, construction and operations lifecycle of digital infrastructure assets.
By addressing coverage gaps, aligning contract language with insurance obligations, and ensuring coverage against potential claims, the team helps clients free up capital and protect their balance sheets.
Commenting on the new team, Mike Mathews, global head of digital infrastructure at Marsh, said: “Contract review requires deep expertise, careful coordination and a significant investment of time, making it a complex and often onerous process for our digital infrastructure clients, many of whom do not have dedicated risk management teams to support the process.
“Our team of experienced contract experts eases the burden on our clients and gives them peace of mind, while also allowing them to grow quickly. This is the latest example of how Marsh brings industry-leading value and solutions to clients investing in this dynamic, rapidly growing industry.”
Earlier this week, Marsh announced the expansion of its global Nimbus data center insurance facility, doubling its capacity $2.7 billion.
The broker’s large data center construction insurance facility now also provides start-up and business interruption insurance for major projects in the UK, US, Canada, Europe, Australia and New Zealand.
