A group of industry players are collaborating to develop a dedicated data centre insurance facility in Singapore to address the Asia-Pacific region’s rapidly expanding digital infrastructure risks.
Announced by Chee Hong Tat, Minister for National Development, and Deputy Chairman of the Monetary Authority of Singapore, at the Singapore International Reinsurance Conference (SIRC), the initiative brings together MSIG, Gallagher Re, SCOR, Samsung Re and the Cybersecurity Association Singapore.
A Memorandum of Understanding (MOU) will be signed this week to formalise the partnership.
According to the announcement, the facility is expected to cover risks across construction, operational, supply-chain, design and cyber risks, with US$200m in initial capacity seeded, before scaling up over time.
The facility aims to solve the sector’s fragmented risk capacity. Driven by the regional boom in artificial intelligence (AI) and cloud computing, APAC data centre capacity is projected to surge from approximately 32 GW to 57 GW by 20230, Chee explained.
However, the scale and technical complexity of high-density clusters, which rely on massive grid capacity, liquid cooling ecosystems, and complex supply chains, often exceed the underwriting appetite or limits of individual insurers.
“We welcome more insurers, reinsurers, and other partners to contribute capacity and expertise as this facility develops. And regional project sponsors to access their protection needs through a one-stop insurance hub in Singapore,” Chee stated.
He noted that the initiative positions Singapore as a regional risk hub rather than a domestic only market: “Initiatives of this nature can help Singapore play a larger role in supporting the safe and resilient development of new infrastructure across the region. This is one way in which insurers can serve as Architects of Resilience.”
