03 Apr 2026 | 5 Mins Read
Insurers partner with hedge funds to mitigate AI data centre risks
Flipitmoney
Insurance companies are struggling to cover risks of massive data-centre projects. Insurers are creating catastrophe bonds, attracting alternative capital from hedge funds and private firms. These instruments allow investors to take on potential losses. The size of new projects exceeds insurer coverage, driving industry to explore additional funding. Cat bonds offer higher returns for investors.