Enhancing Data Centre Resilience: Essential Loss Prevention Strategies and Safer Building Materials

An asset built with superior materials and design is not just safer, it presents a fundamentally better risk to the insurance market. We identify a number of risk features which will help protect your assets and enable us to secure and optimise more favourable insurance terms for your business.

We outline key strategies from the insurance industry guidelines, risk management recommendation in relation to risks like fire, smoke, flooding, and power failures.

1. Understanding the hazards

Data centres are vulnerable in a number of specific hotspot areas particularly fires in energised cabling, power supply issues from UPS batteries (especially Li-ion units), heating, ventilation, and air conditioning (HVAC), generators, and utilities can exacerbate problems if not managed. Risk exposures during fit-outs and construction are also key concerns.

Proactive measures, starting with material choices, are essential to prevent escalation.

2. Construction and location best practices: emphasising safer materials

The foundation of a secure data centre lies in noncombustible materials that limit fire spread and smoke output. Avoid plastics, even fire-retardant varieties, as they produce dense, corrosive smoke that can damage equipment long after a fire is contained.

General Construction Guidelines: Build with fully non-combustible materials for walls, floors, ceilings, and structures. Plastics should be minimised; if used, ensure they meet rigorous standards like FM Approval Standard 4882 for interior walls/ceilings in smoke-sensitive areas or FM Approval Standard 4884 for hot/cold aisle containment panels. Polyvinyl chloride (PVC) is strictly avoided due to its hazardous emissions. Protect against external exposures (e.g., transformers, generators, fuel tanks) with blank masonry walls or equivalent non-combustible barriers.

Walls, Partitions, and Structural Integrity: Install one-hour fire-rated walls for equipment rooms, battery areas, and power systems, extending from floor to structural ceiling. Use non-combustible cores like gypsum or concrete for integrity. In multi-story or high-rise setups, enhance fire resistance for all elements, including floor openings, to compartmentalise risks.

Doors, Windows, and Penetrations: Minimise openings; use tempered/wired glass and 3-to-4 hours fire-rated doors with automatic closures linked to detectors. Seal penetrations (ducts, pipes, cables) with fire-resistant, low-leakage seals matching the assembly’s rating. Temporary fire-stops during construction prevent interim vulnerabilities.

Ceilings and Floors: Opt for Class I non-combustible suspended ceilings (max 30 ft height) and non-combustible raised floors/supports. Avoid exposed combustible elastomers under raised floors; if needed, protect per plastics guidelines.

Cabling, Raceways, and Insulation: Choose plenum-rated or non-propagating cables (e.g., FM Approved Class 3972 Group 1), separating power and data lines. Use non-combustible raceways; plastics must be FM 4910-approved. Insulation for buildings, pipes, and ducts should be non-combustible (e.g., fiberglass/mineral wool) or FM Approved (Standard 4924).

Hot/Cold Aisle Containment: Construct with non-combustible or approved panels. Ensure designs don’t obstruct suppression; add protection below solid ceilings or use drop-out panels.

Natural Hazards: Site above 500-year flood levels (1 in 500-year probability event); design for seismic/wind forces with braced non-combustible supports. These material choices enhance overall durability against earthquakes, storms, and runoff.

3. Occupancy and equipment protection

Limit combustibles in equipment rooms to “scant” levels – no stored cartons or plastics. Provide very early warning fire detection (VEWFD) throughout, extending to racks, raised floors, and HVAC returns for early intervention.

•  Fire Suppression Options: Use flowcharts to select based on materials and setups: automatic sprinklers/water mist for flexibility, or clean agents/hybrids with power isolation. Protect concealed spaces (e.g., under floors) if combustibles are present.

•  Utilities and Support: Isolate battery rooms with barriers; safeguard generators/HVAC. Implement smoke management to prevent recirculation.

4. Detection, suppression, and maintenance

Deploy air-aspirating VEWFD for alerts, integrated with shutdowns. Design suppression for airflows and heights; test quarterly, including power isolation simulations.

5. Human element and planning

Restrict access, train on isolation protocols, and craft plans for emergencies, floods, and interruptions. Business continuity with redundancies minimises downtime.

How we can help

At Price Forbes, our approach is three-fold:

1. We challenge the market with our own advanced Nat Cat modelling, often securing more competitive pricing.
2. We design efficient programmes that give investors the certainty they need by optimising deductibles and limits.
3. We advocate for resilience, helping you integrate mitigation strategies that make your asset strong for the long term.

Understanding these technical details is one thing; translating them into a compelling narrative for the insurance market is another. This is where our specialist expertise creates value. By demonstrating a superior, well-managed risk, we can articulate why your asset deserves improved terms and pricing.

For a deeper conversation on how these strategies can impact your portfolio, please contact: