First Street Study Finds 79% of Global Data Centers at Climate Risk

A study released Thursday by First Street reveals that 79% of global data center capacity is exposed to acute climate hazards, including flooding, wildfires, and extreme winds. More than half of all data centers face chronic stresses, such as extreme heat and drought, which negatively impact operating costs and energy efficiency. The Asia-Pacific region is the most vulnerable, with 89% of its capacity at risk, followed by the Americas at 50% and Europe, the Middle East, and Africa at 46%.

High-growth markets in Northern Virginia, Johor, Malaysia, and Marseille, France, are among the most exposed, while Nordic markets show the lowest risk. The report highlights a critical reliance on outdated historical weather models by insurers and investors, which fail to account for contemporary climate trends.

Some operators are adopting mitigation strategies to counter these vulnerabilities. Digital Realty is implementing waterless or closed-loop cooling systems across its global portfolio of approximately 300 data centers to reduce dependence on water and improve resilience against chronic climate stress.