The National Association of Insurance Commissioners (NAIC) has begun to examine credit risks linked to data centre projects, which are becoming more prominent in insurers’ investment portfolios.
According to the Financial Times, the NAIC is to evaluate areas including the creditworthiness of data centre tenants, the exit clauses of leasing contracts, as well as the construction company’s record such as project delays and cost overruns.
“The NAIC’s Securities Valuation Office reviews investments across a wide range of asset types and sectors, including data centres, as part of its ongoing work on behalf of state insurance regulators,” the rulemaker told the Financial Times in an email statement.
The scrutiny comes as insurance capital plays a growing role in AI infrastructure build-outs in the US. Many early-stage data centre projects are obtaining investment-grade ratings to attract large institutional investors such as insurers and pension funds, even while facilities are still under construction.
