Speed to Power: Can Insurance Keep Up With AI’s Energy Appetite?
Reliability, capacity, and the bill for blackouts.
AI, data centers, and EV charging are pushing U.S. electricity demand up after two quiet decades. The government now wants to fast track power plants and keep some fossil units online for reliability. Politics aside, the underwriting problem is simple: when demand spikes faster than transmission and generation, outage risk rises.
Carriers respond with parametric products for downtime, business interruption tied to grid events, and performance based guarantees from generators. Expect tighter cyber requirements for plants and ISOs, more contingent business interruption limits, and sharper exclusions for avoidable failures.
If you run a data hungry business, do a readiness audit now: dual feeds, on site generation, fuel contracts, and cyber drills. Then buy coverage that matches the real hazard curve, not yesterday’s load forecast.
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Jack Hapsburg …
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