A new global report by climate risk analytics firm XDI has sounded alarm bells for the future of the digital economy, revealing that thousands of data centres worldwide are increasingly vulnerable to climate-related disasters. From rising flood risks to intensifying wildfires, the backbone of the world’s information infrastructure is under growing threat.
Titled The 2025 Global Data Centre Physical Climate Risk and Adaptation Report the study analysed climate threats to more than 8,600 data centres globally. It found that 6.25% of these vital facilities are currently at ‘high’ risk, with projections indicating that this number could rise to 7.13% by 2050. An additional 19.6% could fall under the ‘moderately high’ risk category by mid-century, up from 15.79% today.
The report also warns that the proportion of data centres considered ‘low risk’ will shrink from 78% today to 73% by 2050 if current trends persist. These findings raise fresh concerns for governments and tech companies as the demand for digital infrastructure continues to soar.
Asia Pacific which has experienced the fastest pace of data centre development, emerges as the most at-risk region. Over 10% of its facilities are already classified as high-risk a number projected to climb beyond 12% within the next 25 years. In the US, while the national average for high-risk data centres stands at just over 6%, some states report that 10% or more of their facilities may face serious climate hazards by 2050.
XDI analysis emphasizes the financial implications of climate inaction, predicting that insurance premiums for data centre operators could triple or even quadruple over the next two decades unless significant adaptation measures are implemented. The report underscores the need for urgent investments in infrastructure resilience, noting that smart design and mitigation planning can sharply reduce exposure to climate shocks.
“As demand for data centre capacity accelerates, understanding these risks is essential for building resilience into the backbone of modern life,” the report states. It calls on asset owners, operators, and investors to prioritize strategic adaptation, with clear insights offered to help guide smarter decisions and protect long-term value.
With data centres playing a central role in global business, communication, healthcare, and governance, their increasing vulnerability to climate change marks not just an environmental concern, but a growing economic and security risk as well.