Almost 80% of data centers constructed in natural disaster zones data
centers are fueling and succumbing to climate risks

Date:
Mon, 22 Jun 2026 17:10:00 +0000

Description:
Data centers are already under fire for water and electricity consumption now, they're facing the effects of climate change.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter 79% of data centers are exposed to climate hazards, 54% face chronic heat or drought Higher temperatures lead to more cooling demand, creating a vicious circle Component longevity is also at risk from heat and other impacts According to new First Street research , four in five (79%) or the world's data center capacity is exposed to climate hazards like flooding, wildfire and winds, with more than half (54%) of data centers located in areas that face chronic heat or drought stress.

With hyperscalers investing billions to keep up with demands created by AI, First Street stresses that today's decisions could impact cloud computing for years to come. But even without further investments, rising temperatures and the effects of climate change could put existing facilities under further pressure. Latest Videos From Watch full video here: Hyperscalers are building data centers in at-risk areas Besides the obvious risk of component damage, higher temperatures also mean that data centers need more cooling than they previously did, driving up electricity and water consumption. Because chips and other components operate best at an optimal temperature, higher temperatures could even cause them to fail sooner.

Flooding, winds and storms also threaten electrical systems, network connectivity and fiber networks, potentially leading to outages. You may like Over half of new US data centers could be built in "high risk" disaster-prone states Many new AI data centers will be built on US drought-hit areas Surge
in ultra-hot data centers is creating extreme heat islands

The revelation comes just weeks after a separate study from insurer MS Amlin found that half (56%) of all new projects are being located in disaster-prone areas.

"Most underwriting for real assets still uses historical data, but the
climate is no longer behaving the way the historical record would predict," CEO Matthew Eby said. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners
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But with part and utility costs soaring, companies are being forced to reduce costs elsewhere, including locating campuses in cheaper areas that are often more at-risk. With companies already having to consider compute capacity, power availability, connectivity and local opposition, "climate risk is becoming an increasingly important determinant of long-term performance," First Street warns.

"Together, these risks affect NOI stability, cash flow durability, and long-term asset performance," the company added. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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