Fidelis deploys $250m capacity to tackle AI data centre construction risks

Bermuda-based managing general underwriter The Fidelis Partnership has unveiled a new consortium providing $250 million in capacity to insure the construction of AI data centres.

With estimates suggesting that the AI data centre market could rapidly represent billions in new premium a year, the Fidelis consortium will target excess layers in construction risk where there is currently a lack of capacity to support increasing demand.

In addition to new money provided by the consortium, TFP has also collaborated with existing capacity partners, Fidelis Insurance Group and Fidelis Syndicate 3123, to build capacity.

And from January 1, TFP will also be looking to add further capacity from its new Blackstone-backed Syndicate 2126, which is expected to add another $300 million in GWP to Fidelis.

Michael Davern, UK CUO and group head of D&F property and energy at TFP, said: “We are very pleased to be launching and leading this new consortium at a critical moment in the proliferation of AI data centres. The number and size of AI data centres is growing at pace, and it is essential that the right insurance capacity is available to support the construction of what are high complexity and high value projects.

“Once again, TFP has acted with speed and leadership to unlock capacity where the market needs it most. This new capacity will also be complementary to our diverse product offerings to data centre clients’ needs across: terror, cargo, project finance, surety, renewables, liability and operational property lines, creating new opportunities to cross-sell these products to deliver bespoke client solutions.”

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