A new global report has issued a steely warning about the vulnerability of data centres to the intensifying impacts of climate change. This signal is coming being that data centres are the critical infrastructure powering the world’s digital economy.
Released by the Cross Dependency Initiative (XDI), the report lays bare the extent to which extreme weather and rising climate hazards threaten to undermine the foundations of the internet age.
Analyzing nearly 9,000 operational and planned data centres across the globe, the XDI report reveals alarming projections: by 2050, major data hub cities including New Jersey, Hamburg, Shanghai, Tokyo, Hong Kong, Moskva, Bangkok, and Hovestaden could see between 20% and 64% of their data centre facilities exposed to high levels of physical climate risk. The report evaluates threats from eight major hazards such as flooding, tropical cyclones, coastal inundation, and forest fires.
“These are not distant possibilities. Climate change is already disrupting the physical environment, and data centres, which are the silent engine of the global economy, are squarely in its path,” said Dr Karl Mallon, founder of XDI and one of the report’s lead authors.
“Without urgent action, we face rising operational disruptions, skyrocketing insurance premiums, and billions in physical losses.”
While the report notes that Sub-Saharan Africa currently experiences relatively low levels of physical risk compared to other regions, it warns that the situation may change rapidly. Cities like Nairobi and Lagos, emerging as digital growth hubs, are projected to experience sharp increases in climate-related damage towards the end of the century, potentially straining developing economies already grappling with infrastructure deficits.
The findings present a dilemma for global tech giants and financial institutions heavily reliant on uninterrupted data services. In addition to threats to physical assets, the report spotlights the interconnectedness of data centre operations with broader urban infrastructure such as roads, power grids, water supplies, and communication lines that are themselves vulnerable to climate extremes.
“The most resilient data centre is still only as strong as the infrastructure that supports it,” Mallon emphasized. “Cooling systems, power lines, and logistics routes can all fail under pressure from climate events. That’s why adaptation and decarbonisation must go hand in hand.”
XDI’s analysis challenges governments, tech firms, and investors to rethink how and where they build and maintain data infrastructure. It calls for immediate policy shifts, including the integration of climate risk assessments into data centre planning and investment decisions. The report also urges greater regulatory oversight to ensure that new and existing data centres are climate-resilient.
Industry experts fear that, unless preventive steps are taken now, escalating climate disruptions could lead to widespread service outages, crippling economic activities that depend on real-time digital connectivity from finance and healthcare to education and government services.
