Insatiable demand for data centers is pushing development to high-risk areas

Data center construction continues booming across the U.S. as demand for AI, cloud services, and digital infrastructure climbs, even in areas historically considered high-risk for hurricanes and flooding. In regions like Houston and Miami, new projects are underway despite growing climate threats and rising insurance costs. Developers are pushing forward because power availability, proximity to population centers, and access to flexible and resilient infrastructure have become more important than site risk.

Developers and data-center operators are rethinking location strategy in light of surging load demands. As utilities struggle to scale transmission capacity fast enough to keep up, the industry is increasingly turning toward alternative power solutions and resilient design to support demand growth.

Allan Schurr observes that with modern engineering and resilient power infrastructure, it is possible to build data centers safely by deploying redundant power systems, robust flood protection, and flexible generation that can adapt quickly, even in risk-prone regions. He argues that such infrastructure investments make it feasible to expand capacity while maintaining reliability and protecting against disaster-related outages. Schurr emphasizes that today’s modular, on-site generation and infrastructure upgrades can offer the scalability and resilience many data centers need without requiring long, uncertain grid overhauls.

As digital load growth continues to climb, the demand for flexible, disaster-resilient infrastructure is rising as well. For data-heavy, mission-critical operations, site selection is no longer just about real estate; it’s increasingly about where power and resilience meet.

You can read the full article from Bisnow here.