Cyber Risk is the Weak Link in Data Center Construction

Cyber Risk is the Weak Link in Data Center Construction
November 5, 2025 8 mins

Cyber Risk is the Weak Link in Data Center Construction

Cyber Risk Is the Weak Link in Data Center Construction

Data center construction is booming — but cyber risk management hasn’t kept pace. As digital infrastructure becomes ever more critical, fit-for-purpose insurance solutions are essential to protect projects from costly cyber events that derail timelines and budgets.

Key Takeaways
  1. As data center construction accelerates, cyber risk is emerging as a key vulnerability — one that could lead to operational chaos, delay and financial loss.
  2. Traditional construction insurance policies often fail to adequately plug cyber gaps, leaving project owners exposed.
  3. Bespoke insurance and risk management solutions help defend against cyber exposures across the data center lifecycle.

Data centers are big business. With more than 11,800 operational worldwide by the end of 20241 and more than $1.3 trillion expected to be invested in new data centers globally over the next five years, the sector’s growth is nothing short of explosive.

Yet, in the rush to deliver new capacity, cyber risk management may be falling short.

Given their central role in the digital economy, data centers are increasingly attractive targets for sophisticated cybercriminals and opportunistic threat actors. The rapid evolution of technology and the growing complexity of the threat landscape mean that even a single incident can have significant operational and financial repercussions. “Rising geopolitical tensions and the AI boom compound the issue, heralding in a new era of cyber risk that demands strategic resilience,” says Alexander Curtis, Aon’s Executive Director of Cyber in the United Kingdom.

For project owners and developers, cyber threats now demand the same level of attention as physical risks, especially given the construction industry’s unique exposure due to:

  • Tight project deadlines subject to severe financial penalties if not met
  • Limited tolerance to downtime
  • Heavy reliance on sub-contractors and third parties, as well as digital tools and technology that increase the attack surface and network footprint
  • A strong incentive to get systems back online quickly to avoid missed bid opportunities
  • Evolving cyber security maturity

Below we outline three scenarios that illustrate the multifaceted cyber risks facing data center builds — and underscore why cyber resilience via robust risk management is not just an IT issue, but a strategic business imperative.

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Insurance solutions introduced early in the build phase can spark critical conversations about cyber maturity — and help close the gap before vulnerabilities are exploited.

Brian Hearst
Managing Director, Data Center & Life Sciences Builders Risk Leader, North America

Loss Scenario #1: Cyber Non-Physical Damage During Construction

The situation: A malicious cyber attack strikes a data center under construction. Threat actors exploit a vulnerable remote access server used by a third-party subcontractor, targeting:

  • Critical applications, servers, files and databases containing essential project data, like digital blueprints and architectural drawings
  • Building Information Modeling (BIM) systems and cloud-based project management platforms
  • Internal and external digital communication channels

The fallout: The immediate costs are steep — a ransom payment, data restoration, and Digital Forensics and Incident Response — but the issues don't end there. With vital project data locked or lost, construction grinds to a halt. The financial toll is significant, compounded by soaring professional fees and the sting of missed bid opportunities.

The Big Picture Risk

Data center projects are deeply interconnected with a complex web of vendors and service providers. A single compromised vendor can directly open the door for attackers or indirectly trigger downtime by making key services unavailable.

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There could be over a hundred different contractors and sub-contractors working on a data center build. It's not just the developer that needs to maintain its cyber posture and maturity — it’s also critical for contractors to uphold cyber security standards.

Alexander Curtis
Executive Director, Cyber & Commercial E&O, United Kingdom

Loss Scenario #2: Cyber Physical Damage During Construction

The situation: Threat actors infiltrate the data center project owner’s network, manipulating design data in digital construction blueprints or BIM systems. These tampered files are then unknowingly used during the construction phase of the project, embedding flaws into the build itself.

The fallout: The consequences can be catastrophic. The risk of structural failure halts progress, triggering costly remediation and significant delays. The financial and operational strain quickly escalates as teams scramble to assess and repair the damage.

The Big Picture Risk

A sabotaged design can act as a Trojan horse, introducing hidden defects that may not be discovered until it’s too late. If the tampering is caught during construction, it means an immediate safety stand-down and potentially tearing out and rebuilding faulty sections — costing both time and money.

If undetected, the long-term consequences can be even greater — anything from expensive retrofits of unsafe facilities to, in the worst case, structural failure after handover.

Loss Scenario #3: Cyber Physical Damage During Initial Operation

The situation: As a newly built data center moves into operation, threat actors take advantage of weak security in the Building Management Systems (BMS). By manipulating or shutting down BMS control panels or spoofing temperature or humidity readings, attackers can disrupt the environment that keeps the servers running safely.

The fallout: Servers overheat as cooling systems fail, leading to costly downtime and urgent repair. In some cases, inappropriate temperature conditions can physically damage server racks, requiring expensive replacements and extended outages.

The Big Picture Risk

Overheating IT equipment is the most direct physical risk when a data center’s cooling infrastructure is sabotaged. Without active cooling, internal temperatures can spike within minutes, risking equipment failure or even fire. Critical hardware damaged beyond repair can be expensive to replace and lead to major business disruption and associated losses.

As cyber security responsibility shifts from developer to lessee, clearly define the cyber risk transfer point in the lease agreement — and ensure both parties’ insurance and risk management strategies align with the transition.

8 Considerations for the Cyber Secure Construction of Data Centers

Concern Proactive Consideration in the Build Phase Insurance Impact
Security-by-Design Integrate access controls, network segmentation and monitoring into the architectural design. Lowers overall risk profile, making the data center more attractive to underwriters. Can reduce premiums and avoid restrictive exclusions for cyber-physical risks.
Physical-Cyber Convergence Physically and logically segregate OT systems (e.g. cooling, power) from IT systems using layered physical access controls. Can help secure broader coverage terms that avoid disputes between property and cyber policies.
Resilient Infrastructure & Redundancy Build redundant network paths, isolated backups and offline recovery systems. Plan for micro-segmentation. Reduces severity of business interruption (BI) claims. May shorten policy waiting periods and support higher (sub)limits for BI coverage.
Secure Supply Chain Vet contractors/suppliers for cyber credentials. Enforce contractual security requirements and warranties. Supports contractual risk transfer, reducing retained liability. Demonstrates third-party risk control to insurers, aiding in favorable terms.
Monitoring Integration Install Security Operations Center capability and intrusion detection from day one. Implement real-time anomaly monitoring. Enables faster incident detection and response, reducing claim costs.
Regulatory Compliance Build to exceed GDPR, DORA and industry cyber standards. Integrate audit trail and forensic readiness. Reduces exposure to regulatory fines (often excluded) and helps meet policy conditions.
Sustainability & Security Alignment Secure-by-design for efficiency of tech, IoT systems and renewable integration. Isolate external connections. Mitigates emerging cyber risks and maintains insurability as markets adapt to “green tech” vulnerabilities.
Handover & Lifecycle Governance Formalize cyber governance in operations. Ensure patch management, pen testing and staff training post-build. Supports long-term insurability and stable premiums. Can unlock multi-year policies and avoid re-rating after poor cyber hygiene.

Why Data Centers Need Bespoke Cyber Solutions

A surge in data center construction — and a rapidly evolving cyber risk landscape — means now is the time to rethink insurance strategies. With a buyer’s market in cyber, project owners have a unique opportunity to secure or enhance coverage — especially for the construction phase of data centers, which remains vulnerable.

Here’s why traditional construction insurance often falls short:

  1. Cyber-related incidents are typically excluded. Losses from data breaches, ransomware or cyber-induced property damage may not be covered.
  2. There’s no dedicated cyber trigger. Even if a cyber event causes physical damage or operational disruption, claims can be denied without the right policy language.
  3. Operational technology (OT) and connected systems are left exposed. Many policies don’t address the unique risks of OT and Internet of Things used during construction.
  4. Unclear or inconsistent cyber risk management requirements. Contractors and subcontractors may not be held to the same standards, increasing uninsured exposures.
  5. Delays, business interruption and restoration costs from cyber incidents may not be covered. Standard policies often miss these critical risks.

Bespoke insurance solutions designed for the data center industry — notably, Aon’s Data Center Lifecycle Program, a first-of-its-kind facility — can provide seamless cover from the construction phase of a data center through its first year of operation under one integrated policy.

With Aon's facility, developers also gain access to tailored consultancy and quantification services to assess cyber posture and model risk exposures across the build and operational phases. Get in touch with our team to upgrade your data center project’s cyber readiness.

1 Which Countries Have The Most Data Centers? Statista

Aon’s Thought Leaders
  • Alexander Curtis
    Executive Director, Cyber & Commercial E&O, United Kingdom
  • Brian Hearst
    Managing Director, Data Center & Life Sciences Builders Risk Leader, North America
  • David Molony
    Head of Cyber, Europe, the Middle East and Africa
  • Tariq Taherbhai
    Global Chief Commercial Officer, Construction & Infrastructure

General Disclaimer

The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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