Global data centres face climate risks, UP most at risk in India
XDI (Cross Dependency Initiative) has released a comprehensive report revealing that global data centres face escalating climate risks that threaten the backbone of the digital economy.
The analysis, covering nearly 9,000 operational and planned data centres worldwide, represents the most extensive global assessment of climate threats to digital infrastructure.
The report identifies major data centre hubs facing significant climate exposure by 2050, with locations including New Jersey, Massachusetts, Oregon, Michigan, Connecticut, Hamburg, Shanghai, Tokyo, Queensland, Bangkok, and Jakarta ranking in the top 20 for climate risk. These hubs are projected to have 12-64% of their data centres at high risk of physical damage from climate hazards by 2050.
Globally, XDI estimates 6.25% of data centres currently face high risk (value at risk exceeding 1% of asset value, indicating insurance may become prohibitively expensive), with 15.79% at moderate risk. Under high-emissions scenarios (RCP 8.5, projecting 4.4°C warming by 2100), high-risk data centres will increase by 14% to 7.13% within 25 years, while moderate-risk facilities will rise by 24% to 19.6%.
India features prominently in the global analysis, with 228 data centres examined across the country. Five Indian data centre hubs rank in the top 100 globally, highlighting significant regional variations in climate vulnerability.
Uttar Pradesh emerges as India's most vulnerable region, ranking 2nd globally in the data centre hub analysis. The state's 21 data centres face severe climate risks, with damage projections showing more than double (111%) the risk by century's end. Tamil Nadu ranks 25th globally, with Chennai's data centres already experiencing high vulnerability- more than 1 in 10 are at high risk, while over two-thirds face moderate risk. Maharashtra, despite hosting India's highest concentration of data centres, ranks 48th globally but requires further investigation as it may already be at high risk.
In a world first, the report quantifies how targeted structural adaptations can dramatically improve resilience. Adaptation measures applied to the analysis slashed the number of high-risk data centres by more than two-thirds in 2050, providing billions in annual damage savings.
However, XDI emphasises that decarbonisation and adaptation must work together. Without sustained emissions reduction to limit climate change severity, no amount of structural hardening can fully protect these critical assets. The report provides crucial intelligence for operators, investors, and governments to make informed decisions about resilience investments in an increasingly climate-vulnerable digital economy.
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