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Insights paper

Cyber SLA Parametric Insurance for Data Centres

Protecting revenue, resilience, and investor confidence when critical service levels fail.

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Explore how Cyber SLA Parametric Insurance can help data centre operators manage the financial consequences of service performance failures and strengthen resilience across their portfolio.

As data centres expand their digital infrastructure and tenant portfolios, the financial consequences of SLA breaches are becoming harder to ignore. Power outages, cooling failures, connectivity disruption, and other performance issues can trigger contractual penalties, service credits, tenant dissatisfaction, and even lease termination.

Marsh’s Cyber SLA Parametric Insurance for Data Centres explores how organisations can transfer these risks more effectively through a tailored insurance solution linked to predefined SLA performance metrics. With clear trigger events and pre-agreed payout mechanisms, this approach can help data centre operators protect financial performance and strengthen resilience in an increasingly demanding operating environment.

Use this insight paper to:

Understand the growing financial risks associated with SLA breaches in data centres and digital infrastructure.
Learn how parametric insurance can respond to outages and performance failures tied to power, cooling, connectivity, and other defined metrics.
Explore how fixed, pre-agreed payouts can help offset service credits, tenant termination losses, and related financial exposures.
Discover how risk transfer solutions can support asset valuation, investor confidence, and long-term financial sustainability.

Data centre operators face increasing exposure when service level agreements are not met. Failures relating to power continuity, heating and cooling, connectivity, or other key performance metrics can lead to:

Lost revenue from service credits or refunds.
Business interruption during refurbishment or re-letting of affected halls.
Reduced asset value and pressure on investor confidence.
Potential impacts on financing eligibility and long-term commercial performance.

Marsh’s SLA parametric insurance for data centres and digital infrastructure is designed to protect against losses arising from performance failures and SLA breach events. The solution can be adapted for individual facilities or multiple data centres on an aggregated basis.

Coverage is linked to predefined SLA performance metrics, such as uptime percentage or power continuity, as set out in lease agreements. When those thresholds are breached — whether through a continuous outage or repeated service disruption — the policy can trigger a fixed payout over a predefined period.

The policy can also respond when:

A tenant terminates a lease agreement following an SLA breach.
SLA credits or other costs are incurred to prevent termination rights from being exercised.

Common trigger events may include:

Breach of a defined SLA performance metric.
SLA-defined outages involving power, cooling, or connectivity.
Tenant termination notice following an SLA breach.

Key benefits

Compensation linked directly to defined SLA performance metrics.
Clear, pre-agreed parameters that simplify the payout process.
Reduced exposure to penalties and financial obligations under SLA provisions.
Flexible coverage options tailored to outages relating to power, cooling, or connectivity.

Why this matters now

In a market where uptime and service continuity are central to tenant relationships, SLA breaches can have consequences far beyond immediate operational disruption. They can affect revenue, occupancy, financing, and reputation — all of which are critical to the long-term performance of a data centre asset.

This insight paper outlines how a parametric approach can help organisations build a more resilient risk strategy by creating greater certainty around recovery when predefined service failures occur.

Why Marsh

With deep expertise in risk, insurance, and data centre operations, Marsh is uniquely positioned to support clients across the full data centre lifecycle — from development and construction through to operation and expansion.

Our approach helps organisations:

Safeguard critical assets.
Address complex contractual risk.
Improve financial resilience.
Maintain investor confidence in a rapidly evolving sector.

FAQs

It is an insurance solution designed to protect data centre operators against financial losses arising from predefined SLA breach events, such as outages or failures involving power, cooling, or connectivity.

This insight paper is relevant for data centre owners, operators, developers, investors, risk managers, and anyone responsible for operational resilience, tenant contracts, or financial performance within digital infrastructure businesses.

The insight paper focuses on risks associated with SLA performance failures, including service credits, refunds, tenant lease termination, business interruption, and broader impacts on asset value and investor confidence.

Coverage is linked to predefined SLA performance metrics. If agreed thresholds are breached, the policy triggers a fixed payout based on the terms set in advance.

Key advantages include faster clarity around claims outcomes, simpler payout mechanisms, and coverage aligned more closely with contractual performance obligations.

Yes. The insight paper explains that the product can be adapted for individual facilities or structured across multiple data centres on an aggregated basis.

SLA breaches can create significant downstream financial consequences. A structured risk transfer solution can help reduce volatility, support income protection, and reinforce confidence among investors and stakeholders.

Report

Cyber SLA Parametric Insurance for Data Centres