As data centers look for greater power resilience and operational flexibility, Battery Energy Storage Systems (BESS) are being implemented in many projects currently under construction, most often those using lithium-ion cells. These systems can improve reliability and drive cost savings, but they also introduce new, complex hazards including the risk of thermal runaway. In a thermal runaway event, a battery cell’s temperature escalates uncontrollably, quickly spreading heat and potentially causing fire, toxic gas release, or even explosions. A single failure in a densely packed data center environment can threaten the entire facility.
Enhanced loss control measures including engineering safeguards, advanced detection and suppression, and tight operational protocols are part of the comprehensive insurance and risk mitigation programs recommended for data center construction and operation.
Documenting physical fire barriers, real-time battery management systems, effective ventilation, and specialized fire suppression can help build higher coverage limits and keep overall premiums for data centers manageable.
Should a battery incident occur, detailed documentation of your loss control processes, including maintenance records, detection system logs, and emergency procedures, can help demonstrate that you exercised reasonable care and will simplify any potential claims.
Most Property and Builders Risk policies, especially for large and complex data center construction and operations, require documentation of planning around BESS risk to initiate coverage. Regular review and updating of your loss prevention measures will keep your facility aligned with current insurer standards and help facilitate renewals and audits.
Strong loss control measures and collaboration with a carrier’s risk engineering teams to provide added support and guidance can help further minimize thermal runway risks.
