Aon has expanded the capacity of its proprietary Data Center Lifecycle Insurance Program to $2.5 billion, responding to surging global investment in cloud computing, artificial intelligence, and large-scale digital infrastructure. The move follows a $1 billion increase in available coverage and reflects growing concern among investors and operators about the financial and operational risks associated with increasingly complex data center projects.
Introduced in 2025, the Data Center Lifecycle Insurance Program was developed to address a long-standing challenge in the data center market: fragmented insurance coverage spread across multiple policies and providers. By consolidating traditionally separate risk classes into a single, coordinated solution, Aon aims to simplify risk transfer across the entire lifecycle of a data center, from construction and equipment transport through to steady-state operations.
The expansion comes as data centers scale rapidly to support AI workloads, hyperscale cloud platforms, and latency-sensitive enterprise applications. These facilities are becoming larger, more capital-intensive, and more operationally critical, while also facing heightened exposure to cyber threats, supply chain disruptions, construction delays, and operational outages. According to Aon, the expanded program is designed to provide capacity at a level that aligns with the financial scale of modern data center developments.
Greg Case, president and CEO of Aon, said managing risk across the data center lifecycle has become a strategic priority as these assets underpin innovation, connectivity, and economic growth. He noted that as facilities grow in both importance and complexity, resilience must be built into their infrastructure to protect not only operators, but also customers and the wider business ecosystem that depends on continuous digital services.
The Data Center Lifecycle Insurance Program integrates multiple lines of coverage, including construction all risks, delay in start-up, operational property damage, business interruption, cyber risk, cargo, and third-party liability. By aligning these coverages under a single structure, the program is intended to reduce friction during project execution, improve certainty around risk transfer, and support more predictable investment outcomes.
Joe Peiser, CEO of Commercial Risk at Aon, said disruptions at data centers can have cascading effects that extend well beyond a single facility, impacting customers, supply chains, and enterprise operations globally. He emphasized that expanding the program’s capacity allows clients to manage risk more holistically, from initial build-out through long-term operations, while enabling faster and more confident project execution.
Under the expanded structure, the program provides up to $2.5 billion in coverage for construction all risks, delay in start-up, and operational property damage and business interruption. Cyber-related coverage, including cyber property damage and technology errors and omissions, is available up to $400 million and can include both damage and non-damage business interruption as well as service-level agreement violations. The program also offers third-party liability coverage up to $100 million outside the United States, along with project cargo and transport insurance of up to $500 million.
In addition to insurance capacity, the program integrates risk engineering, analytics, and cyber impact modelling through Aon’s Global Risk Consulting capabilities. This approach is designed to help clients anticipate potential failure points, demonstrate resilience to investors and regulators, and support long-term operational performance.
The expansion of the Data Center Lifecycle Insurance Program aligns with Aon’s broader strategy to scale risk capital solutions for digital infrastructure. Late last year, the company renewed its proprietary Client Treaty facility with enhanced terms, including coverage for extended construction periods, underscoring its focus on supporting complex, large-scale technology projects from inception through operation.
As AI-driven demand accelerates, Aon’s latest move highlights how insurance and risk advisory services are evolving to match the scale and strategic importance of digital infrastructure worldwide.
Executive Insights FAQ
Why did Aon expand the Data Center Lifecycle Insurance Program?
The expansion reflects rising investment in AI, cloud, and digital infrastructure, along with increasing risk complexity and capital intensity.
What differentiates the DCLP from traditional insurance approaches?
It consolidates multiple risk classes into a single coordinated program covering construction through ongoing operations.
Who is the program designed for?
Investors, developers, and operators of large-scale, complex data center projects globally.
How does the program address cyber risk?
It offers up to $400 million in cyber-related coverage, including business interruption and technology errors and omissions.
What additional services support the insurance coverage?
Integrated risk engineering, analytics, and cyber impact modelling through Aon’s Global Risk Consulting teams.
