Data centers are the backbone of today’s digital economy. These secure facilities house servers, data storage, and network systems that power everything from email and payroll to banking, logistics, and streaming services. Even businesses that don’t operate their own infrastructure depend on data centers through cloud providers like Microsoft, Amazon, and Google.
As reliance on these facilities grows, so does their physical presence, especially in states like Ohio. We have over 200 data centers, making Ohio the fifth-highest state in the country, according to the Office of the Ohio Consumers’ Counsel. A full map of all 204 data centers can be found on datacentermpa.com/usa/ohio.
Rapid development has brought increased attention from local communities. Data centers require significant electricity to operate and large volumes of water for cooling. They also introduce constant equipment noise and are often built as large, windowless structures that can change the character of surrounding areas. Community concerns go beyond aesthetics, however. Residents and local officials have raised questions about long-term economic impact, including the relatively small number of permanent jobs created compared to the tax incentives often offered. In addition, zoning disputes and extended construction timelines can disrupt neighborhoods for years, adding another layer of complexity to these projects.
These community and infrastructure concerns are not just local issues. They directly influence how insurers evaluate risk. Data centers concentrate high-value equipment and rely heavily on continuous power, increasing exposure to outages, equipment failure, and business interruption losses. In Ohio, where utilities have already indicated that large-scale developments may strain the electric grid, this risk becomes even more pronounced.
The impact also extends beyond the facilities themselves. Because many businesses rely on shared cloud infrastructure, a single outage can affect thousands of organizations at once. This type of aggregation risk has led insurers to reevaluate coverage, tightening contingent business interruption limits and placing greater emphasis on redundancy, resiliency, and dependency planning.
External risks further complicate the picture. Severe weather events in Ohio continue to highlight vulnerabilities tied to power and connectivity. Long-term storm data reinforces how disruptions to critical infrastructure can quickly translate into operational and financial losses for businesses that depend on uninterrupted digital access. Curious what the storm data shows? OIA members have access to a 2026 Ohio Storm Events Summary provided by Paul Buse with Real Insurance Solutions Consulting. This resource provides data of “storm events” in Ohio for 2025, and over the past 26 years, since the year 2000, highlighting the risks of data center reliance amidst severe weather.
Along with severe weather events, community pushback can create additional insurance challenges. Delays tied to zoning, permitting, or legal disputes can extend construction timelines or halt projects altogether. This increases exposure under Builder’s Risk policies and raises the likelihood of delay-in-completion losses.
Regulatory scrutiny is also increasing. As municipalities evaluate water usage, energy demands, and environmental impact, new legislation is emerging to give local governments more authority over data center development. In Ohio, this signals a shift toward stricter oversight and more complex approval processes, adding another layer of risk for both developers and insurers.
In response to infrastructure constraints, many data center operators are exploring “behind-the-meter” power solutions, generating electricity on-site rather than relying solely on the grid. While this approach can improve resilience and speed to market, it introduces new considerations around equipment, environmental exposure, and operational complexity that insurers must account for.
All of these factors are reshaping how risks are evaluated. Underwriters and agents now look more closely at power redundancy, cooling systems, water approvals, cloud dependencies, cybersecurity controls, and even community opposition. These elements influence pricing, coverage terms, and availability across property, business interruption, cyber, and Builder’s Risk policies.
For policyholders, this often shows up as more detailed conversations during renewals or new business reviews. Questions around cloud reliance, outage preparedness, and backup systems are becoming standard. These discussions help ensure coverage aligns with how businesses operate in an increasingly digital environment.
Despite evolving perceptions, data centers are long-term infrastructure investments. Facilities are typically designed to operate for decades, with ongoing upgrades to equipment and systems over time. This long lifespan reinforces the importance of addressing risk, insurance structure, and community alignment early in the process.
As technology continues to evolve, the infrastructure supporting it is becoming more visible and more complex. Data centers may operate behind the scenes, but their impact is increasingly felt by communities, regulators, utilities, and insurers alike. As dependence on digital systems grows, insurance plays a critical role in helping businesses understand, manage, and navigate these interconnected risks.
About the Author
Jeannine Giesler, CISR, CPIA, and past President of the OIA Board of Directors, Foundation for the Advancement of Insurance Professionals, currently serves as Resource Center Advisor for the OIA. The purpose of the Resource Center is to contribute to building a comprehensive library of resource materials for our members. We pride ourselves on being the one-stop shop for all OIA members and work to solve every problem or situation you may come across.
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