HDI flags four risks for Asia-Pacific data centres

HDI Global has identified four factors it considers central to managing natural catastrophe and climate risks for data centres in Asia-Pacific, as growing regional demand makes the issue more urgent.

The analysis focuses on site-specific risk assessment, resource constraints, construction standards and operational preparedness. It argues that operators can no longer rely on broad approaches to site selection, design and operations as climate and natural hazard exposure grows more complex across the region.

Tokyo is a leading example of the challenge. The city is one of the region's main data centre hubs, but it also faces high exposure to earthquakes, severe storms and flooding, while climate projections point to stronger heat and rainfall extremes.

That pattern extends beyond Japan. Across Asia-Pacific, demand for new facilities is rising in markets where floodplains, seismic conditions, wildfire corridors and storm exposure can vary sharply even within the same metropolitan area.

Micro-location risks

HDI's first point is that resilience starts with a detailed assessment of the exact site, not the wider city or region. Micro-location factors can determine whether a facility faces disruption, physical damage or prolonged downtime.

This includes examining how flood exposure varies across nearby plots, how local ground conditions could affect seismic response and whether a site is near routes that increase wildfire risk. HDI also points to the need to map vulnerabilities inside facilities, including server rooms, power generation and distribution systems, and cooling infrastructure.

Such assessments are meant to help operators set protection targets and review them over time as risk conditions change. Climate data is also becoming part of that process as developers weigh not only today's hazards but also the conditions a site may face over a facility's operating life.

Heat and power

The second factor centres on access to stable electricity and the growing impact of extreme heat. For data centres, higher temperatures can raise cooling demand and put pressure on systems already running close to capacity during hot periods.

HDI cites projections for more than 200 extreme hot days above 35C in Mumbai and Singapore between 2081 and 2100. In practical terms, that would make heat a dominant operating condition for much of the year and increase strain on cooling systems, backup power and demand management.

Cooling performance is now a resilience issue rather than a routine engineering matter, the insurer said. If cooling efficiency falls or systems fail, operators may have to reduce capacity, deal with overheating equipment or face service outages.

Electricity supply is also exposed to weather-related disruption. Lightning, localised flooding and severe storms can trigger voltage fluctuations, short interruptions or extended blackouts, adding another layer of operational risk for facilities that depend on continuous uptime.

Building design

The third area is construction. HDI argues that many facilities are still designed to standards typical of commercial buildings, even though data centres have different loss profiles because of their internal equipment, fit-out and reliance on uninterrupted support systems.

It identifies vulnerabilities including large compartments, flat slab areas and drainage features such as internal downpipes or valley gutters that may fail during intense rainfall. Suggested measures include emergency roof drainage overflows, higher placement of critical equipment, improved floor drainage and compartmentalisation to limit the spread of damage.

Local hazard profiles also shape the protection needed. In earthquake-prone areas, that means seismic-resistant design and anchoring of critical equipment. In typhoon-exposed markets, it means stronger building envelopes and protection for rooftop installations that could be damaged by extreme wind.

Downtime planning

The fourth factor is operational preparedness. Even with careful site selection and stronger construction, operators cannot remove all risk, HDI says, making emergency planning and continuity measures a key part of reducing business interruption losses.

Depending on the location, this can include early warning systems, formal response plans and making sure staff and services can still reach sites during wildfire or flood events. HDI also highlights the need for redundancy in critical infrastructure, supply chains, IT systems and network architecture.

Johanna Rohrer, Risk Analyst, Natural Hazards and Climate Risks, HDI Global, said: "The risk landscape for data centres in Asia-Pacific is changing rapidly as natural hazard and climate risks intensify.

"Standard approaches to site selection, construction and operation are increasingly insufficient."

The findings come as insurers, operators and investors pay closer attention to the physical risks facing digital infrastructure. For a sector built around continuous availability, the combination of higher temperatures, more intense rainfall, stronger storms and localised hazard exposure is turning resilience from a design preference into an operating requirement.

HDI said sites can be evaluated before construction for current and future exposure to natural hazards and physical climate risks, with mitigation measures focused on site conditions, accessibility and supply chains.