Aon Lifts Data Center Insurance Capacity to $5 Billion Amid AI Boom

Aon plc has expanded its Data Center Lifecycle Insurance Program (DCLP) to $5 billion in capacity, responding to surging demand from artificial intelligence and hyperscale data center construction.

The increase enables coverage for larger, more capital-intensive digital infrastructure projects critical to the global economy. The program bundles Construction All Risks, Delay in Start-Up, and Property Damage with Business Interruption coverage under a single facility backed by A-rated insurers from Lloyd's and company markets.

Reliable by Design

The updated program introduces a "Reliable by Design" approach that embeds insurance capacity, engineering expertise, and risk intelligence from the development phase through long-term operations. This lifecycle integration aims to reduce transition risk—the gaps in coverage and risk management that typically occur as projects move from construction to operation.

"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."

Coverage Breakdown

According to Aon's announcement, the expanded program includes:

• Up to $200 million in third-party liability coverage outside the U.S. ($100 million within the U.S.)
• $400 million in Cyber and Technology Errors and Omissions coverage
• $500 million in project cargo coverage
• $1 billion in terrorism capacity

The expansion addresses a structural shift in data center development. AI workloads and cloud computing demand have pushed facility designs toward greater complexity, with higher power densities, specialized cooling systems, and extended construction timelines. Traditional insurance structures often struggle to provide sufficient limits or coordinate coverage across the multiple phases of these multi-year projects.

Market Context

The move positions Aon to compete for the largest hyperscale developments, where insurance capacity can become a financing constraint. Lenders and equity investors increasingly require evidence that operational risks are covered before committing capital to billion-dollar facilities.

By consolidating coverage across the asset lifecycle, the program reduces the administrative burden on developers who previously needed to negotiate separate policies for construction, cargo, cyber, and operational phases. The engineering component also provides risk mitigation guidance that can lower premiums and improve insurability for non-standard designs.

The expansion reflects broader insurance market adaptation to the AI infrastructure buildout, where traditional risk models are being recalibrated for assets that combine physical construction exposure with technology performance and cyber vulnerability.