Euler ILS Partners Targets $1B for Data Center Catastrophe Risk Fund

Alternative investor Euler ILS Partners targets $1B for the first insurance-linked securities fund focused on environmental and catastrophic risks to hyperscale data centers.

By: AXL Media

Published: Apr 27, 2026, 6:54 AM EDT

Source: Bisnow

Addressing the "Insurance Gap" in Hyperscale Development

As hyperscale data center campuses reach valuations as high as $30 billion, traditional insurance markets are facing "capacity constraints." According to a recent S&P Global report, the insurable value of these facilities now dwarfs that of major infrastructure projects like bridges or tunnels, which typically top out at around $10 billion. Euler’s fund is designed to provide the necessary liquidity and risk-sharing to support these massive assets.

Key Risks: Climate Change and Geographic Clustering

The fund will specifically focus on weather-related hazards that threaten the operational continuity of data centers. Key risks include:

Severe Weather: Tornadoes and windstorms in regions like Texas.

Extreme Heat: Rising temperatures that strain cooling systems and power grids.