A new study from climate risk analytics firm First Street reveals that nearly 80% of datacenters are exposed to extreme climate hazards, including flooding, extreme winds, and wildfires. The research, reported by The Guardian, warns that the infrastructure powering the artificial intelligence boom is increasingly vulnerable to the very environmental disruptions its greenhouse gas emissions help intensify.
These exposures could lead to disrupted operations, increased downtime, and inflated insurance and repair costs for datacenter operators. The findings underscore a growing tension between the rapid expansion of AI computing capacity and the physical risks posed by a changing climate—risks that are compounded by the energy-intensive nature of these facilities.
Politically, the report enters a landscape where lawmakers remain deeply divided over AI regulation and climate policy. Democratic leaders have pushed for stricter emissions standards and climate resilience requirements for critical infrastructure, while many Republicans argue such mandates would stifle innovation and economic growth. The study could provide fresh ammunition for oversight hearings and proposed legislation on AI's environmental footprint.
Climate groups are likely to seize on the data to press for stronger federal rules on datacenter siting and energy use. Industry representatives may push back, arguing that voluntary standards and market incentives already drive resilience investments. The report arrives ahead of a Senate subcommittee hearing on AI infrastructure, where similar questions are expected to surface.
The study did not estimate total economic losses from potential disruptions, but noted that repair and insurance costs could rise significantly for facilities in high-risk zones. First Street's findings are based on its proprietary climate risk modeling, which is widely used by insurers and real estate investors.