79% of Global Data Center Capacity Faces Elevated Climate Risk, First Street Finds
Seventy-nine percent of global data center capacity sits in locations carrying elevated exposure to at least one climate hazard, according to research published by First Street on June 18. The analysis covers the world's largest and fastest-growing data center markets, finding them concentrated in areas exposed to flooding, extreme heat, wildfire, wind, and drought.
Key takeaways
- First Street research published June 18 found that 79% of global data center capacity sits in locations with elevated exposure to at least one climate hazard.
- The analysis identified five distinct climate hazard categories affecting data center siting: flooding, extreme heat, wildfire, wind, and drought.
- Both the world's largest existing data center markets and the fastest-growing ones are concentrated in high-hazard locations, meaning capacity growth is not migrating toward lower-risk geographies.
- Flooding, wildfire, and wind threaten physical assets and operational continuity, while extreme heat and drought impose chronic stress on cooling infrastructure and water availability.
- First Street frames data center climate risk as geographically structural rather than idiosyncratic to individual sites, giving investors a quantified starting point for siting-risk assessment.
Seventy-nine percent of global data center capacity sits in locations carrying elevated exposure to at least one climate hazard, according to research published by First Street on June 18. The analysis covers the world's largest and fastest-growing data center markets, finding them concentrated in areas exposed to flooding, extreme heat, wildfire, wind, and drought.
Elevated Exposure Is the Norm, Not the Tail
The 79% figure frames elevated climate exposure as the baseline condition for this asset class rather than an exceptional one. First Street identified five distinct hazard categories bearing on where global capacity is sited — flooding, extreme heat, wildfire, wind, and drought — spanning both acute physical damage risk and chronic operational stress.
Capacity Growth Is Not Dispersing Risk
The research distinguishes between the world's largest existing markets and the fastest-growing ones, finding both sets concentrated in high-hazard locations. For the buy-side, the implication is that new capital flowing into data center construction is not naturally migrating toward lower-risk geographies — climate exposure and capacity growth appear to be running in the same direction.
The five hazards carry different operational consequences. Flooding, wildfire, and wind threaten physical assets and continuity of operations. Extreme heat and drought impose chronic stress, affecting cooling infrastructure, water availability, and the energy costs embedded in long-duration infrastructure valuations.
First Street's findings position data center climate risk as geographically structural rather than idiosyncratic to individual sites. Investors with exposure to data center infrastructure now have a quantified starting point for siting-risk assessment: by this measure, nearly four out of every five units of capacity operates in elevated-hazard territory.
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Filed by the macro desk of MarketPR on June 19, 2026. Source: prnewswire.com. Indicative figures are not investment advice.