Data centres to drive captive growth
Captive insurers are likely to become important in the fast-growing data centre insurance market, as hyperscale technology companies struggle to secure sufficient conventional cover for their expanding infrastructure, according to Standard & Poor’s (S&P).
Speaking to Intelligent Insurer on the first day of the SIRC 2026 Conference, S&P’s Simon Ashworth said the strongest source of captive growth would be linked to data centres. Hyperscalers face challenges meeting the insurance requirements needed to build, maintain and operate these facilities, creating a need for captive or self-insurance arrangements.
“We think there’s going to need to be some captive / self-insurance element,” Ashworth said, describing the scale and pace of data centre development.
S&P is projecting $10 billion in data centre insurance premiums in 2026. Ashworth noted that this would already make the market twice the size of global aviation insurance, with rapid growth expected.
The opportunity comes with capacity and risk-management challenges. Individual data centres can represent large exposures, making aggregation and accumulation risks a central concern for insurers. Although interest from insurers and reinsurers is increasing, the market may need additional capital. Ashworth pointed to insurance-linked securities, improved exposure modelling and new sources of capacity as possible routes.
Even if those developments materialise, he expects captives to retain a substantial role because demand is growing so quickly. Potential cover extends beyond construction to data centre supply chains, business interruption and liability, as well as specialist exposures once facilities are operational, including GPU insurance.
Ashworth said S&P had undertaken research into data centre liability insurance, a line that might currently appear specialised but could become a sizeable market and which will be a watchpoint over the next decade given US social inflation.
The discussion also touched on captive domiciles in Asia. S&P has received enquiries about rating captives, particularly in Hong Kong and Singapore. Tax advantages and government or regulatory incentives are among the factors being used to attract companies. The two financial centres could become competitive destinations for captive formations.
For S&P, rapid infrastructure investment, complex exposures and constrained insurance capacity make data centres a prospective driver of captive growth across the region.
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