Some thoughts on data centers and associated risks, from HDI Risk Consulting;
The risk landscape for data centres in Europe is changing rapidly as natural hazard and climate risks intensify. Standard approaches to site selection, construction and operation are becoming increasingly insufficient. Johanna Rohrer, Risk Analyst Natural Hazards and Climate Risks at HDI Global, HDI Risk Consulting and Gareth Hopkins, Risk Engineer at HDI Global, HDI Risk Consulting, outline four key factors for strengthening resilience and preventing losses.
The London area is one of the most important data centre hubs in Europe and at the same time characterised by an increasingly complex natural hazard and climate risk profile. According to HDI ARGOS 4.0, the city already faces a multi-hazard environment dominated by pluvial flooding, emerging heat stress and increasing water scarcity. Projected precipitation indicators show intensifying rainfall extremes, with maximum 5-day precipitation exceeding 60 mm during the period 2081-2100. Climate projections indicate further intensification of extreme heat and water stress, increasing the need for effective resilience measures. London illustrates a broader pattern across Europe, where growing demand for data centres coincides with complex risk profiles. However, these risks can be addressed through targeted prevention and adaptation measures.
1. Prevention starts with location-specific risk assessment
The resilience of data centres is increasingly determined at the micro-location level. Site-specific factors such as flood zones or drainage capacity define actual exposure. In Amsterdam, for example, coastal and pluvial flooding can disrupt operations, making elevation and drainage design in vulnerable areas crucial.
Once potential risks have been identified, the next step is to assess site-specific vulnerabilities. Critical areas may include server rooms, power generation and distribution infrastructure, as well as cooling systems. A structured assessment helps prioritise critical assets and identify appropriate protection measures. Defining protection targets and regularly reviewing resilience measures ensures that they remain aligned with changing risk conditions. Forward-looking climate risk data further supports decision-making by enabling the assessment of future developments before site selection, improving decision-making and risk mitigation planning.
2. Resource constraints as emerging risk factor
Data centre resilience depends on the availability and stability of critical resources, in particular electricity. Climate projections indicate increasing heat extremes and prolonged dry periods across Europe. For data centre operators, rising temperatures can increase energy consumption for cooling demand and place additional pressure on future infrastructure planning. Heat waves can also reduce system margins, making cooling performance, grid resilience, backup power arrangements and demand management increasingly important. Cooling therefore becomes a critical resilience factor, as reduced cooling efficiency or system failures can lead to lower operational capacity, equipment overheating and, in severe cases, service outages.
The stability of electricity supply is affected by extreme heat, severe storms and flooding, which can lead to infrastructure damage, short interruptions or longer blackouts. Increasing energy demand heightens the risk of outages and operational disruption.
3. Construction as key lever for resilience
While natural hazard mechanisms are well understood, typical construction standards in Europe often do not fully account for the risk of emerging climate conditions and the vulnerability of data centre fit outs. Data centres are frequently designed as typical commercial buildings, and key vulnerabilities include large compartments, flat slab areas and drainage features such as internal downpipes or valley gutters that may fail during extreme rainfall. External equipment and building floor levels may also rely heavily on the effectiveness of surface drainage, increasing exposure in extreme rainfall or flash flood events.
The design of the site should therefore include emergency overflows in roof drainage systems to divert water away from the building, elevated positioning of critical equipment and floor levels together with floor drainage and compartmentalisation of critical areas to limit loss propagation. While these measures can significantly reduce vulnerability to more common severe-wind, debris and water-ingress scenarios, suitable mitigation strategies always depend on the specific site conditions and should be assessed on an individual basis.
4. Reducing downtime through operational resilience
Resilience is not limited to physical protection measures. Despite careful site selection with robust construction, low natural hazard and climate risk exposure, disruptions cannot be ruled out with absolute certainty. The extent of business interruption losses therefore also depends on the level of operational preparedness. Depending on location, key measures include early warning systems, clearly defined emergency response plans and ensuring site accessibility during a wildfire or flooding event, for example. In addition, redundancies for critical infrastructure and the supply chain, as well as resilient IT and network architectures, are essential to maintain operations. These measures significantly reduce downtime and limit financial impacts.
Data centre resilience requires a continuous and forward-looking approach to risk management. As a Partner in Transformation, HDI Global supports this by maintaining close dialogue with clients and partners, combining risk assessment with active risk management. Sites can be evaluated before construction to assess current and future exposure to natural hazards and physical climate risks. Together with clients, vulnerabilities are addressed through targeted risk mitigation measures, early warning systems and emergency planning, with a focus on site conditions, accessibility and supply chains.
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