Data Centers: How AIG Is Powering Risk Solutions in the AI Boom

As data centers emerge as the latest frontier in the global AI boom, they bring tremendous potential for growth -- along with a host of new and complex risks for clients to navigate.

That’s where AIG comes in, offering a suite of insurance solutions that is designed to mitigate the risks from origination to expansion, backed by AIG’s technical expertise, claims proficiency, global reach and client-centered approach.

“We’re incredibly well positioned to engage with our clients -- which we’re doing already -- to build bespoke risk solutions across the lifecycle of data centers,” says Gordon Browne, AIG’s Head of Global Specialty in London. “We are right at the forefront of this industry, and we expect to see huge upside for both the insurance market as well as for our clients.”

Data centers’ latest rebirth as a component of the digital infrastructure for AI and cloud storage is transforming the risk environment. At the same time, the sector is creating new opportunities, with annual investment in data centers expected to surpass US$300 billion by 2027, according to an S&P Global report.  

Nearly 850 data centers are under construction globally, according to Oxford Economics. The asset mix is also changing, with more spending on memory and logic-related components and less on building costs like cooling and power, shifting the risk to technology, according to Exponential View.

“This is an evolving complex field, but one that AIG’s expertise – including our engineering capabilities – put us right at the front of the pack to bring something unique and valuable to our clients,” Gordon says.

AIG has well established itself in the data center sector by providing significant capacity, specialized underwriting and a global network in support of our clients. AIG’s capabilities include more than 40 products including specialist lines from Talbot that address a wide spectrum of risks across the asset lifecycle, from construction and marine cargo to operational property and business interruption for both mid-sized and hyperscaler data centers.

Global Specialty’s world-class capabilities

In addition to his focus on data centers, Gordon leads AIG’s Global Specialty business, powered by a team of underwriters in more than 30 countries. They focus on helping clients from a range of sectors manage some of the largest, most complex risks in areas such as construction, energy, marine, aviation and credit lines.

The business offers more than 60 products to clients around the world aimed at providing cover for modern day risks, including geopolitical instability, digital ecosystems, supply chains and other challenges.

The team is supported by AIG’s world-class risk engineering, underwriting and claims capabilities, encompassing market-leading tools through a Multinational network and captive fronting.  Those capabilities translated to a 15% year-over-year growth in new business year to date through the second quarter, according to AIG internal data.

“We're one of the world's largest in our chosen segments,” Gordon says. "We build deep relationships, not just with our major broker partners, but also with our clients as we understand their business."

Gordon, who has built a more than 20-year career in insurance, is endlessly fascinated and challenged by the constant change and various scenarios he encounters every day.

That could mean insuring gold bullion in the U.S., a UK high-speed rail network, the expansion of a metro line in Asia, or complex cross-border marine shipments for some of the most iconic brands in the world.

“It’s very dynamic,” Gordon says. “You get to work with some of the smartest people in the industry. Every day, you wake up and something new is happening that creates a huge amount of opportunity for AIG.”

What sets AIG apart from peers

As the risk landscape becomes ever-more complex, Gordon is confident about Global Specialty’s ability to navigate the market cycle, continue to grow and secure meaningful returns for AIG’s stakeholders.

“Our leadership, multinational capability and claims expertise really set us apart from our peers, and our brokers and clients are looking to do more with AIG than they've ever done before,” he says.

Learn more about AIG’s data center insurance solutions and Global Specialty business.

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