Climate Risk Threatens 79% of Global Data Center Capacity

The analysis of 97 global markets highlights a growing disconnect between digital infrastructure expansion and environmental reality. While capacity is projected to double by 2030, investors continue to prioritize power and connectivity over the rising costs of cooling and potential operational downtime. According to the research, 54% of global capacity faces chronic stress from extreme heat and drought, factors that directly erode operating margins by inflating cooling expenses and reducing system efficiency.

Regional disparities are stark. Markets in the Asia-Pacific region see 89% of their capacity exposed to climate stress, significantly higher than the 50% found in the Americas or 46% in EMEA. Major hubs like Northern Virginia, Johor, and Marseille—often considered prime investment targets—rank among the highest-risk tiers globally. Dr. Jeremy Porter, Chief Economist at First Street, notes that location dictates long-term costs for the next three decades, yet climate remains a secondary concern in most boardrooms. Founder and CEO Matthew Eby adds that reliance on historical data is increasingly dangerous, as current climate patterns no longer align with the records of the past.