Singapore insurers propose US$200 million facility for data centres
The planned insurance facility would cover risks across Asia, with participating organisations expected to formalise their cooperation through a memorandum of understanding.
A proposed insurance facility would draw on US$200 million in capacity pooled by Singapore insurers to cover risks facing Asian data centres. Chee Hong Tat, Singapore’s Minister for National Development, announced the plan at the Singapore International Reinsurance Conference.
The participants are MSIG, Gallagher Re, SCOR, Samsung Re and the Cybersecurity Association Singapore. Coverage would encompass cybersecurity, design, supply chains, construction and operations. There are plans to increase the facility’s capacity over time.
Chee, also Deputy Chairman of the Monetary Authority of Singapore (MAS), said a memorandum of understanding was expected to formalise the partnership. He described existing cover as fragmented and said individual insurers might have insufficient capacity for large, complex data centre risks.
By bringing together underwriting resources and specialist expertise based in Singapore, the facility aims to fill those gaps. The plan comes amid projections that Asia-Pacific data centre capacity will reach 57 gigawatts by 2030, up from 32 gigawatts, as demand for AI and digital services grows.
