HDI Global, a commercial and industrial insurer within the HDI Group, says data centre operators across Asia-Pacific are facing increasingly complex natural catastrophe (NatCat) and climate-related risks as demand for digital infrastructure continues to grow.
According to the company, resilience can no longer rely on conventional approaches to site selection, construction and operations alone, with organisations needing to consider a broader range of current and future hazards.
HDI Global’s analysis, prepared by Johanna Rohrer, Risk Analyst Natural Hazards and Climate Risks at HDI Global, HDI Risk Consulting, and Gareth Hopkins, Risk Engineer at HDI Global, HDI Risk Consulting, highlights location-specific risk assessment, reliable access to essential resources, resilient building design and operational preparedness as the principal factors influencing a facility’s ability to withstand disruption and limit financial losses.
The company points to Tokyo as an example of the challenges facing many of Asia-Pacific’s largest data centre markets. According to HDI ARGOS 4.0, the metropolitan area is exposed to multiple natural hazards, including earthquakes, severe storms and flooding.
Earthquake activity presents the potential for structural damage, while typhoons can bring wind speeds of up to 200 km/h alongside heavy rainfall and flood risks.
HDI Global also notes that climate projections indicate further increases in extreme temperatures and intense precipitation, reinforcing the need for long-term resilience planning. While Tokyo illustrates these challenges, the company says similar risk profiles are emerging across other fast-growing data centre markets in the region.
The company believes that resilience begins with a detailed understanding of each site’s individual risk profile rather than relying solely on regional assessments. The company explains that local conditions, including floodplains, seismic characteristics and wildfire corridors, can significantly influence both the likelihood of physical damage and the potential for operational disruption.
Assessing how hazards could affect critical infrastructure, including server rooms, electrical systems and cooling equipment, allows operators to identify vulnerabilities and prioritise appropriate protection measures. HDI Global adds that regularly reviewing resilience strategies and incorporating forward-looking climate projections into planning can help organisations make better-informed decisions before new facilities are developed.
The availability of critical resources is also becoming an increasingly important consideration, according to HDI Global. Electricity remains fundamental to data centre operations, yet the company warns that rising temperatures are expected to increase demand for cooling while placing additional pressure on energy infrastructure. Climate projections indicating more than 200 days above 35°C between 2081 and 2100 in cities including Mumbai and Singapore illustrate the scale of the challenge, HDI Global says.
Higher temperatures can increase energy consumption, reduce operational margins and make cooling performance, backup power arrangements and demand management more significant than ever. The company also notes that electricity supplies may be disrupted by lightning strikes, localised flooding and severe storms, creating the potential for voltage fluctuations, temporary interruptions or prolonged power outages.
Alongside operational considerations, HDI Global says building design remains a critical element of resilience. Although many natural hazards are well understood, the company believes conventional construction standards do not always reflect changing climate conditions or the specific requirements of data centre facilities. Features commonly found in commercial buildings, such as large internal compartments, flat slab roofs and certain drainage systems, may be more vulnerable during extreme rainfall events.
To reduce exposure, HDI Global recommends incorporating measures such as emergency roof overflows, elevated installation of critical equipment, effective floor drainage and compartmentalisation to limit the spread of damage.
The company also stresses that construction standards should reflect the dominant hazards at each location, with seismic-resistant design and secure anchoring of equipment in earthquake-prone regions, and stronger building envelopes and protection for rooftop installations in areas exposed to typhoons.
HDI Global adds that physical protection measures alone cannot eliminate disruption. Even facilities designed to high standards may still experience operational challenges following severe weather or other natural hazard events. The company therefore considers emergency preparedness to be equally important, highlighting the value of early warning systems, clearly defined response procedures and maintaining access to sites during flooding or wildfires.
Resilient IT infrastructure, backup arrangements for critical systems and robust supply chains also play an important role in reducing downtime and maintaining business continuity when incidents occur.
According to HDI Global, improving resilience requires an ongoing approach rather than a one-off assessment. As a Partner in Transformation, the company says it works with clients to assess both current and future exposure to natural hazards and physical climate risks before facilities are built, while also identifying vulnerabilities and developing practical mitigation measures.
These include site-specific risk reduction strategies, early warning capabilities, emergency planning and measures to strengthen accessibility and supply chain resilience, with the aim of helping organisations reduce losses and maintain operations as risk conditions continue to evolve.
