Story perspectives

Data Centers Move West, Confront Climate Threats, Rising Insurance

7/3/2026

Summary

Story summary

Nearly two-thirds of new data-center capacity this year is shifting to frontier markets West Texas and Ohio.
In Lowell, Massachusetts, the Markley Group data center is straining the power grid, prompting an expansion moratorium.
Zurich’s McBride warned that HVAC roofs at these sites are vulnerable to tornadoes, hail and high winds.
First Street research found 79% of global data-center capacity faces elevated flood, wind or wildfire risk, raising insurance costs.

History

Historical Context

In October 2012 Hurricane Sandy formed on Oct 22, became extratropical and hit New Jersey on Oct 29, unleashing a record surge and $68.7 billion U.S. damage. Its massive outages and flooded data hubs revealed infrastructure fragility, leading insurers such as Zurich and First Street and regulators to tighten standards for new data-center projects in West Texas and Ohio.

1 of 2

Story summary

Nearly two-thirds of new data-center capacity this year is shifting to frontier markets West Texas and Ohio.
In Lowell, Massachusetts, the Markley Group data center is straining the power grid, prompting an expansion moratorium.
Zurich’s McBride warned that HVAC roofs at these sites are vulnerable to tornadoes, hail and high winds.
First Street research found 79% of global data-center capacity faces elevated flood, wind or wildfire risk, raising insurance costs.

1 / 2