Latest news with #2025GlobalDataCentrePhysicalClimateRiskandAdaptationReport
News18
3 days ago
- Business
- News18
Over 12% Of India's Data Centres Highly Vulnerable To Climate Change: Report
Last Updated: Over 12% of India's data centres face severe climate change risks by 2050, warns XDI's report. Date centres in UP, Maharashtra, Telangana, Karnataka, and TN are highly vulnerable. More than 12% of India's data centres may face severe infrastructure damage from climate change-induced extreme weather events such as floods and rising sea levels by 2050, according to a new report. The analysis covers nearly 9,000 operational, planned, and under-construction data centres worldwide, including 228 in India. The study evaluates their exposure to eight climate hazards under a high-emissions scenario from now until the end of the century. The 2025 Global Data Centre Physical Climate Risk and Adaptation Report by XDI (Cross Dependency Initiative), an international firm that assesses cost of climate-related impact to physical assets, warned that data centres in India are increasingly vulnerable. The analysis flagged Uttar Pradesh as one of the most at-risk locations globally. Other vulnerable regions include Maharashtra, Telangana (Hyderabad), Karnataka (Bengaluru), and Tamil Nadu (Chennai), all of which are major hubs for India's growing data infrastructure. By the end of the century, the risk to India's data centres is projected to more than double — increasing by 111%. The report categorises facilities into high, moderate, and low-risk groups based on their annual likelihood of suffering direct financial loss from climate-related damage, measured as a percentage of the cost to replace each building. Data centres are critical to the digital economy, powering services ranging from cloud storage and AI to financial systems. India, a leading data centre hub in South Asia, is expected to attract investments worth $5.7 billion in this sector. However, the report underscores the urgent need for resilience planning. Extreme weather can severely disrupt services and cause major financial losses. XDI's analysis shows that strategic adaptation—such as modifying building designs and incorporating structural reinforcements—could reduce the number of high-risk data centres globally by over two-thirds by 2050. Other countries facing high climate-related risks to their data centre infrastructure include the U.S., China, Germany, Denmark, and Japan. In cities such as New Jersey, Hamburg, Shanghai, Tokyo, Hong Kong, Moskva, Bangkok, and Hovedstaden, between 20% and 64% of data centres could be at high risk by mid-century. 'When so much depends on this critical infrastructure — and with the sector growing exponentially — operators, investors, and governments can't afford to be flying blind. Our analysis helps them see the global picture, identify where resilience investments are most needed, and chart pathways to reduce risk," Karl Mallon, founder of XDI, said in a statement. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Techday NZ
3 days ago
- Business
- Techday NZ
Climate risks threaten 27% of global data centres by 2050
A new report by climate risk analytics company XDI shows that a growing proportion of data centres worldwide face increasing physical risks linked to climate change, with the threat set to intensify by 2050. The XDI 2025 Global Data Centre Physical Climate Risk and Adaptation Report analyses nearly 9,000 operational and planned data centres globally, mapping their exposure to physical threats such as flooding, cyclones, forest fires and coastal inundation, both now and under various future emissions scenarios. Current risks outlined XDI's analysis finds that, currently, approximately 6.25% of data centres around the world are classed as High Risk, meaning their value at risk exceeds 1% of their total asset value. The report notes: "a high risk of insurance becoming prohibitively expensive or withdrawn entirely" for these sites. A further 15.79% of data centres are at Moderate Risk, with value at risk between 0.2% and 1%, where "insurance is likely to be available, but expensive." In total, 22% of global data centres fall into these high to moderate risk categories under present conditions. Projections for 2050 under a high-emissions scenario (RCP8.5) indicate that the proportion of High Risk data centres will increase by 14%, reaching 7.13%. At the same time, the proportion of Moderate Risk centres is expected to rise by 24%, reaching 19.6%. This brings the total proportion at risk to 27%. The RCP8.5 scenario represents a global warming trajectory leading to 4.4°C of warming by 2100, which authors describe as "appropriate to use in prudent risk assessment." Projections under a lower-emissions scenario, RCP2.6, are also presented in the report. Key regional findings The report ranks data centre hubs - defined as the highest subnational jurisdiction such as state or province - by the proportion of sites projected to be at High Risk by 2050. Data centre hubs in New Jersey, Massachusetts, Oregon, Michigan and Connecticut in the United States, along with Hamburg, Shanghai, Tokyo, Queensland, Bangkok and Jakarta, are listed in the top 20 for climate risk by mid-century. These regions could see between 12% and 64% of their data centre assets facing high risk of physical damage due to climate hazards by 2050. Some hubs, including New Jersey and Massachusetts, are projected to see an increase in risk of 600 to 1000% over the period from 2025 to 2100, according to XDI's analysis. The Asia-Pacific region is highlighted as the fastest growing market for data centres. Yet, it is also among the most exposed regions, with more than one in ten data centres already classed as high risk in 2025 - rising to more than one in eight by 2050. Variation in local exposure The report underscores that exposure to climate-related hazards varies significantly between locations, even within the same country or region. XDI states: "This kind of like-for-like, jurisdiction-spanning analysis is critical for guiding smarter investment decisions in new and existing data centres - helping asset owners, operators and investors allocate capital where it will have the greatest impact on protecting long-term value." Insurance and resilience XDI estimates that insurance costs for data centres could triple or quadruple by 2050 if decisive mitigation and adaptation measures are not implemented. The report suggests that targeted investments to improve resilience could prevent billions of USD in damages each year. "Data centres are the silent engine of the global economy. But as extreme weather events become more frequent and severe, the physical structures underpinning our digital world are increasingly vulnerable," says Dr Karl Mallon, Founder of XDI (Cross Dependency Initiative). Dr Mallon also commented: "When so much depends on this critical infrastructure - and with the sector growing exponentially - operators, investors, and governments can't afford to be flying blind. Our analysis helps them see the global picture, identify where resilience investments are most needed, and chart pathways to reduce risk." Potential of adaptation One significant finding from the report is the effect of structural adaptation. XDI found that targeted structural adaptations - changes in design and construction - could reduce the number of data centres at High Risk by over two-thirds in 2050, although the report acknowledges that such measures are costly. The report observes, "Adaptation measures applied to the base analysis slashed the number of High Risk data centres by more than 2/3 in 2050." The need for decarbonisation Alongside calls for greater resilience, the report emphasises that adaptation alone is insufficient. Climate risk to digital infrastructure will continue to grow without significant progress on reducing emissions. The report states, "without ambitious and sustained investment in emissions reduction to limit the severity of climate change, no amount of structural hardening will fully protect these critical assets." Furthermore, the report cautions that even the most resilient data centre is only as secure as the infrastructure it relies upon, such as transport, power, water and communications networks, which may themselves be vulnerable to the same hazards. XDI's new data provides what it describes as the most comprehensive, decision-ready analysis for asset owners, operators, investors and policymakers, helping them quantify and manage the physical risks to digital infrastructure posed by climate change over the decades ahead.
The Hindu
4 days ago
- Business
- The Hindu
Climate change poses mounting threat to India's data centres, warns global report
As global demand for artificial intelligence, cloud computing, and digital services accelerates data centre development, a new report has warned that these critical infrastructures face escalating physical risks from climate change. The 2025 Global Data Centre Physical Climate Risk and Adaptation Report, released by the Cross Dependency Initiative (XDI), offers a comprehensive assessment of climate vulnerabilities across nearly 9,000 operational and planned data centres worldwide. The report flags significant risks in India, with five States – Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka, and Telangana–featuring in the top 100 most climate-exposed hubs globally. Uttar Pradesh ranks second in the global risk index, with 61.9% of its 21 assessed data centres projected to be at high risk of physical climate damage by 2050. The risk of damage is expected to more than double – rising by 111% – by 2100. Tamil Nadu, particularly the Chennai region, also features prominently. Over 10% of the State's data centres are already considered high risk, while nearly 70% fall under the moderate risk category. The State ranks 25th globally in the climate risk index. Maharashtra, which hosts the largest number of data centres in India – including hubs in Mumbai and Navi Mumbai – is ranked 48th. Approximately 5.71% of its facilities are already in the high-risk category, and 66% are moderately exposed. The overall risk in the State is projected to increase by 133% by the end of the century. According to the report, 6.25% of data centres globally are currently considered high risk – defined as having a projected value-at-risk exceeding 1% of asset value – potentially rendering them difficult or prohibitively expensive to insure. This figure is expected to rise to 7.13% by 2050. Moderate risk data centres currently account for 15.79% globally and are forecast to increase to 19.6% within the next 25 years. Apart from India, other high-risk regions include Jiangsu (China), Hamburg (Germany), Shanghai (China), Tokyo (Japan), Bangkok (Thailand), Hong Kong, and New Jersey (United States), where between 20% and 64% of data centres are projected to be highly vulnerable by mid-century. 'Data centres are the silent engine of the global economy. But as extreme weather events become more frequent and severe, the physical structures underpinning our digital world are increasingly vulnerable,' said Dr. Karl Mallon, Founder, XDI. The report also highlights a growing financial dimension to the risk, noting that climate-induced damages are straining the global insurance market. In 2024, insurance losses from natural disasters exceeded USD 135 billion for the fifth consecutive year, prompting insurers to revise risk models, raise premiums, and reduce coverage in climate-sensitive regions. In response, the report proposes structural adaptations – such as flood barriers, reinforced materials, and elevation of critical infrastructure – to bolster resilience. According to the analysis, such measures could reduce the number of high-risk data centres by more than two-thirds by 2050 and decrease moderate-risk facilities by over 70%. 'Adaptation measures applied to the base analysis slashed the number of high-risk data centres by more than 2/3 in 2050,' the report states. The economic implications of these measures are also significant. The report estimates that the average value-at-risk could be reduced by approximately 0.20% in 2025 and 0.28% in 2050, amounting to $8-11 billion in avoided annual damages. Over a 25-year period, the net present value of these avoided losses could reach $120 billion. However, the report cautions that structural upgrades alone are insufficient. Data centres are also dependent on surrounding infrastructure – such as power grids, water supply systems, communication lines, and road networks – which are similarly vulnerable to climate risks. 'Without ambitious and sustained investment in emissions reduction to limit the severity of climate change, no amount of structural hardening will fully protect these critical assets,' Dr. Mallon said. India, positioning itself as a global digital hub with rapid expansion of hyperscale data centres, stands at a crucial juncture. Key urban regions including Mumbai, Navi Mumbai, Chennai, Noida, and Hyderabad are witnessing significant investment in cloud computing, AI, and fintech platforms. However, the XDI report underscores the urgency of complementing this growth with targeted adaptation and decarbonisation strategies to safeguard infrastructure, maintain investor confidence, and ensure long-term viability, Mr. Mallon added.
Indian Express
4 days ago
- Business
- Indian Express
More than 12% of Indian data centres at risk from extreme weather events: Study
More than 12 per cent of India's data centres—specialised buildings full of computing machines and related hardware equipment—are likely to be at high risk of infrastructure damage from climate change-induced extreme weather events such as floods and rising sea levels by 2050, according to a new report. The report takes into account all operational, planned and under-construction data centres across the world, and projects at least 228 to be within India by 2050. The data centres in Uttar Pradesh are likely to be some of the most vulnerable in the world, the analysis suggests. Those in Maharashtra, Telangana (Hyderabad), Karnataka (Bengaluru), and Tamil Nadu (Chennai) are also at risk from climate change hazards. This risk of damage to data centre infrastructure might more than double (111 per cent) by the end of the century, says the report by XDI (Cross Dependency Initiative), an international company which assesses the cost of climate change impacts on physical assets. Data centres are at the heart of the artificial intelligence revolution, and power services such as banking systems and cloud storage. As the backbone of modern digital infrastructure, these facilities are expected to dramatically rise in numbers across the globe in the coming years. For instance, in India—which has emerged as a foremost data centre hub in South Asia—the data centre industry can attract investments worth $5.7 billion. However, this critical infrastructure is under serious threat from climate change and its adverse impact. Extreme weather events can significantly damage data centres around the world, leading to disruption in services and substantial financial loss, as per the report. Apart from India, data centres in other countries such as the United States, China, Germany, Denmark, and Japan are also vulnerable. For example, between 20 per cent and 64 per cent of these facilities in New Jersey, Hamburg, Shanghai, Tokyo, Hong Kong, Moskva, Bangkok, and Hovedstaden are at high risk of physical damage from climate change hazards by 2050, according to the report. The '2025 Global Data Centre Physical Climate Risk and Adaptation Report' was released on Thursday. The company XDI examined the risk to nearly 9,000 data centres—which are operational, under construction and planned—globally, including 228 in India. It analysed how eight different types of climate change hazards, under a high emissions scenario from now until the end of the century, would pose a threat to these facilities. The company then categorised data centres into high, moderate, and low-risk properties. These classifications were calculated by determining each property's probability of incurring direct financial loss from climate-related damage to infrastructure in any given year, and were expressed as a percentage of the replacement cost of each building, the report said. The analysis emphasised that there was an urgent need to make data centres resilient to extreme weather events. This can be done, for example, by modifying building designs and incorporating structural adaptation measures. Taking these steps can reduce the number of high-risk data centres by more than two-thirds in 2050, the report suggests. 'When so much depends on this critical infrastructure — and with the sector growing exponentially — operators, investors, and governments can't afford to be flying blind. Our analysis helps them see the global picture, identify where resilience investments are most needed, and chart pathways to reduce risk,' Karl Mallon, founder of XDI, said in a statement.
