Data centres—the critical infrastructure powering banking systems, cloud storage, emergency services, communications and logistics—are facing sharply rising risks from climate change-driven extreme weather, according to a major new report released by XDI (Cross Dependency Initiative), a global leader in physical climate risk analysis.
The 2025 Global Data Centre Physical Climate Risk and Adaptation Report reveals that nearly 9,000 data centres across the globe are facing rising threats from extreme weather events. The report ranks leading data centre hubs by their exposure to eight climate hazards—flooding, tropical cyclones, forest fires, coastal inundation and more—now and into the future and under different climate scenarios.
The report quantifies how targeted structural adaptations can dramatically improve resilience, reduce risk, and help curb escalating insurance costs.
“Data centres are the silent engine of the global economy. But as extreme weather becomes more frequent and intense, they are increasingly exposed,” said Dr Karl Mallon, Founder of XDI. “Our analysis enables governments, investors and operators to pinpoint where resilience investments are most urgently needed.”
Key Global Findings:
- 12–64% of data centres in major hubs like New Jersey, Shanghai, Tokyo, Hamburg, Bangkok, and Jakarta are projected to be at high risk of climate-related damage by 2050.
- The Asia-Pacific region, the fastest-growing data centre market, is especially vulnerable, with more than 1 in 10 centres already high-risk in 2025, increasing to 1 in 8 by 2050.
- Insurance costs for data centres globally could triple or quadruple by 2050 without decisive mitigation and adaptation.
- Targeted investments in resilience could save billions of dollars in damages annually.
India's Rising Exposure:
India features prominently in the global rankings, with five of its data centre hubs—Uttar Pradesh, Chennai (Tamil Nadu), Mumbai (Maharashtra), Bengaluru (Karnataka) and Hyderabad (Telangana)—placed among the top 100 most climate-exposed regions.
- Uttar Pradesh ranks 2nd globally, with 21 data centres identified as especially vulnerable. The risk of climate-related damage to infrastructure here is projected to more than double (111%) by the end of the century.
- In Maharashtra, which has the highest concentration of data centres in India, early indicators suggest it may already be at high risk, warranting further analysis. It ranks 48th globally.
- Tamil Nadu, with dense installations in Chennai, ranks 25th globally, where more than 10% of data centres are already high-risk and over two-thirds are at moderate risk.
Across the globe, 6.25% of data centres are currently classified as High Risk, with their "value at risk" exceeding 1%—a level where insurance may become unaffordable or unavailable.
The report highlights that climate risk varies dramatically by location, even between data centres in the same country or region. It also reinforces that decarbonisation and adaptation must go hand in hand to safeguard the digital economy.
The report makes a compelling case for proactive adaptation, demonstrating that well-designed physical upgrades could reduce the number of high-risk centres by more than two-thirds. However, the authors caution that even the most robust centres are only as secure as the infrastructure they depend on—including roads, power supply and water—much of which is also under threat.