Aon has expanded its Data Center Lifecycle Insurance Program from $1.5 billion to $3.5 billion, the broker said this week. The move comes as demand from the AI and cryptocurrency sectors pushes data center buildouts — and their associated risks — to new highs. The program is now targeting $5 billion in total coverage.
Why the expansion now
AI training clusters and crypto mining operations both require massive amounts of power and cooling. That means more data centers going up faster, often in new geographies. Insurers have been cautious — construction delays, equipment failures, and business interruption claims have all risen. Aon's program is designed to cover the full lifecycle, from construction through operations, and the $2 billion increase reflects the sheer volume of new projects coming online.
Inside the program
The Data Center Lifecycle Insurance Program isn't a single policy. It's a facility that Aon uses to place coverage across multiple carriers. The expansion from $1.5B to $3.5B means Aon can now underwrite larger individual projects without having to syndicate as broadly. That speeds up the placement process — a real advantage when developers are racing to get shovels in the ground.
The $5 billion target
Aon isn't stopping at $3.5 billion. The broker has set a $5 billion target for the program. That would make it one of the largest dedicated data center insurance facilities in the market. Whether it hits that number depends on how quickly new projects come to market — and whether the insurance industry's appetite for data center risk keeps growing alongside the demand.
The expansion is already in effect. Aon is now working with clients to place coverage under the new $3.5 billion limit. The next milestone is the $5 billion target — no timeline has been given, but with AI and crypto demand showing no signs of slowing, it could come sooner than later.
