A new report from First Street indicates that nearly 80% of datacenters worldwide are exposed to significant climate hazards such as floods, wildfires, and extreme winds. These risks threaten operations, leading to increased downtime and higher costs for insurance and repairs. The study highlights that many datacenters are being built in high-risk areas, particularly in the Americas, which accounts for 86% of datacenter capacity in elevated-risk markets, while Asia-Pacific faces the greatest heat and drought exposure. AI
IMPACT The AI boom's infrastructure demands exacerbate climate risks, potentially disrupting digital services and increasing operational costs.
RANK_REASON The cluster reports on a study concerning infrastructure vulnerability to climate change, which is a research finding. [lever_c_demoted from research: ic=2 ai=0.4]
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