Insurers in Singapore are pooling US$200 million in capacity to cover data centre risks ranging from cyberattacks to operational disruptions.
The proposed facility will bring together MSIG, Gallagher Re, SCOR, Samsung Re and the Cybersecurity Association Singapore to provide insurance coverage across Asia.
It will cover construction, operational, supply chain, design and cybersecurity risks, with plans to expand its capacity over time.
Singapore’s Minister for National Development Chee Hong Tat announced the initiative at the Singapore International Reinsurance Conference.
Chee, who is also Deputy Chairman of the Monetary Authority of Singapore (MAS), said the participating organisations are expected to formalise the collaboration through a memorandum of understanding during the week.
The initiative comes as Asia-Pacific’s data centre capacity is projected to grow from 32 gigawatts to 57 gigawatts by 2030, driven by demand for AI and digital services.
Chee said existing insurance coverage remains fragmented, while individual insurers may lack the capacity to cover large and complex data centre risks.
The new facility aims to address these gaps by combining underwriting capacity and specialist expertise in Singapore.
Featured image: Edited by Fintech News Singapore, based on image by ImageFlow via Magnific
