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Swiss Re Corporate Solutions expects global companies operating large data centers to increase their spending on AI technologies to $750 billion in 2026, compared to about $500 billion last year.

According to Reuters' insurance-focused news service 'The Insurer,' the company said this will support increased demand for insurance coverage across multiple business sectors.

Evan Gonzalez, CEO of the company, said that the complex risks associated with the rapid expansion of data centers require more innovative solutions from the insurance and capital markets sectors to address cumulative insurance risks across financial markets.

In the latest Swiss Re report released on Wednesday, he wrote: 'These interconnected risks require solutions that go beyond traditional insurance, combining risk engineering, alternative risk transfer, and financing to help companies invest more aggressively.'

Jerome Haegeli, chief economist of the Swiss Re Group, warned that while AI provides positive conditions for growth, it also increases inflationary pressures, which could put pressure on the claims system and raise costs.

Haegeli said the level of spending is unmatched by any comparable infrastructure spending in any post-war sector.

Looking ahead to the next five years, Haegeli explained that spending on AI infrastructure is on track to roughly double from this year, reaching about $1.6 trillion.

He pointed out that this will provide a boost to the economy, physical and digital assets, as well as insurance markets that will need to cover the associated risks.

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