Singapore launches 200m data centre insurance fund
Singapore will introduce a dedicated data centre insurance facility starting with $200 million in coverage, Chee Hong Tat, the national development minister and MAS deputy chairman, announced. The initiative will be formalized through a memorandum of understanding this week during the Singapore International Reinsurance Conference (SIRC).
The facility will cover risks including construction, operational, supply chain, design, and cyber risks, said Chee at the Singapore International Reinsurance Conference.
Members of the initiative include MSIG, Gallagher Re, SCOR, Samsung Re, and the Cybersecurity Association Singapore, with Gallagher Re presumably organizing the new facility as the broker.
Chee expressed his support for the collaboration, stating that the facility will bring together underwriting capacity and specialized capabilities to serve the region’s data centre risk needs.
The minister noted that the scale and complexity of emerging risks in some areas mean that no single insurer can provide all the necessary capacity and expertise, citing data centres as a clear example.
APAC data centre capacity is projected to increase from around 32 GW to 57 GW by 2030, driving the need for specialized insurance solutions, said Chee.
Operators of these high-density computing clusters face exposures across construction, property damage, cyber incidents, operational downtime, and contractual obligations, with risk profiles evolving as facilities move from build-out to live operations.
As investments in data centres in the region grow, there is a significant opportunity for Singapore’s insurance industry to anchor more risk capacity and develop specialized expertise to support their risk financing needs at scale, according to Chee.
The MAS would welcome more insurers, reinsurers, and other partners to contribute capacity and expertise as this facility develops, said Chee, adding that regional project sponsors can access their protection needs through a one-stop insurance hub in Singapore.
