Professional services firm Aon has expanded its data center insurance offering, growing the amount of cover it offers to developers and operators.

The company this week announced it has expanded its Data Center Lifecycle Insurance Program (DCLP) with an additional $5 billion in program capacity and broader integrated risk solutions.

The DCLP is a multi-line insurance facility that is designed for risk management across every stage of data center development and operations. It covers construction, cargo, cyber, and operational exposure under one program.

With the newly announced additions, the DCLP now provides up to $5 billion in construction all-risks, delay in start-up, and property damage and business interruption coverage.

The expansion has added greater lifecycle risk, resilience, and advisory capabilities through Aon’s Global Risk Consulting business, including climate risk advisory, environmental risk solutions, owners protective professional indemnity, security risk consulting, risk engineering, and operational resilience expertise.

Additionally, it now includes expanded liability, cyber, and project cargo capabilities, with up to $200 million in third-party liability coverage outside of the US and $100 million in the US, as well as $400 million in cyber and technology errors and omissions and $500 million in project cargo coverage.

The DCLP also now allows for up to $1 billion of terrorism capacity through Aon’s existing facilities.

Aon said the expansion was due to increasing demand for insurance solutions as a result of increased investment in AI, cloud computing, and hyperscale data centers.

"Digital infrastructure has become one of the most important and capital-intensive asset classes in the global economy," said Joe Peiser, CEO of Risk Capital for Aon. "As clients build larger and more complex data center portfolios, they need access to greater insurance capacity alongside solutions that strengthen resilience throughout the asset lifecycle. Expanding DCLP to $5 billion demonstrates our ability to help clients access capital, manage risk and scale with confidence."

The insurance industry has been relatively slow to expand to meet the growth of the data center industry, as huge investment in AI infrastructure has led to skyrocketing demand for insurance. Concentration risks and fears of overbuild have led to cautious expansion for insurers.

S&P Global Ratings estimates the total insurable asset base of the data center industry is now more than $2 trillion and could double within the next six years.