The rise of artificial intelligence has triggered a construction boom unlike anything the United States has seen in modern history. Driven by hyperscalers racing to build the digital infrastructure that powers AI workloads, investment in data centers has reached historic levels and shows no sign of slowing.
U.S. spending on data center construction reached an estimated $77.7 billion in 2025, a staggering 190% year-over-year increase.[1] Looking ahead, ConstructConnect is already tracking 76 projects valued at over $88 billion set to break ground in the next six months - 13% more than all of 2025 combined.[2] Over the full 2026-2030 horizon, data center developers and Big Tech firms plan to start construction on 2,913 data centers valued at approximately $2.4 trillion (Source: McKinsey & Company; Synergy Research Group, 2026 projections).
The scale of individual commitments is equally striking. The Stargate Project, a joint venture between OpenAI, SoftBank, Oracle, and MGX, has pledged $500 billion over four years for AI infrastructure[3] are expected to spend a combined $700 billion in capital expenditures in 2026, largely tied to AI and data infrastructure (Source: Goldman Sachs Global Investment Research, 2026). Globally, $3 trillion in data center investment will be required by 2030 to meet AI-driven demand (Source: Moody’s Ratings, 2025).
The potential risk: When speed creates danger
Industry research shows that a significant majority of data center incidents trace back to human factors, particularly during installation, commissioning, and maintenance phases. The risk is amplified on today’s job sites, where compressed timelines force overlapping workstreams and reduce the margin for error. 79% of Data Center outages involve human error.[4] Electrical systems are often energized while adjacent work is still underway, increasing the likelihood of accidental contact, arc flash events, or improper sequencing.
When those errors occur, the impact is rarely isolated.
A single mistake during commissioning can destroy critical components such as switchgear, transformers, or UPS systems- equipment that is not only expensive, but increasingly difficult to replace. What might once have been a contained incident can now trigger a chain reaction: damaged equipment, stalled construction schedules, delayed project delivery, and extended business interruption. Uptime Institute reports that more than half of significant outages now cost organizations over $100,000, while one in five exceeds $1 million in direct and indirect losses.[5]
From an insurance perspective, these events are complex and costly. Claims often involve multiple parties, overlapping coverages, and significant forensic investigation to determine root cause. Repair timelines are no longer measured in weeks, but in months, or even years, due to supply chain constraints.
The electrical equipment crisis
If human error is the risk hiding in plain sight, the electrical equipment shortage is the crisis hiding in the supply chain.
According to Bloomberg, more than half of U.S. data center projects planned for 2026 face delays or cancellation due to power infrastructure constraints.[6]
Before 2020, lead times for high-power transformers averaged 24-30 months. Today, those lead times have stretched to 3-5 years for large power transformers[7] and up to 144 weeks for generator step-up units.[8]
At the same time, costs have surged. Power transformer prices have risen approximately 70-80% since 2019, with some distribution transformer categories increasing by as much as 95%.[9]
Material shortages, particularly copper and grain-oriented electrical steel, combined with surging demand from data centers, EV infrastructure, and grid upgrades, are driving these increases.
Reducing risk at the source: Crawford’s next innovation
In a market defined by long lead times, constrained supply, and rising costs, traditional risk management is no longer enough. Responding to loss after it occurs does little to solve the underlying problem: critical infrastructure that cannot be replaced quickly, or sometimes at all.
Crawford & Company is addressing that challenge head-on.
Through our Crawford Power initiative, we are taking decisive steps beyond conventional claims management by establishing strategic partnerships with original equipment manufacturers (OEMs) and other specialized vendors. This direct relationship enables Crawford to support sourcing of essential electrical infrastructure more efficiently and, in some cases, at competitive cost levels compared to standard procurement channels.. We are extending this offering to our partners and clients across insurance, manufacturing, retail, restoration, hospitality, healthcare, municipal and public entities, as well as universities and colleges.
The impact can be meaningful in certain situations.
By shortening procurement timelines, Crawford can help clients mitigate the risk of cascading delays that define today’s equipment-constrained environment. By securing direct-from-manufacturer supply, the company can help reduce exposure to price volatility and the risks associated with secondary or non-certified components. And by ensuring access to permanent, production-grade equipment where available, rather than relying solely on temporary or emergency power solutions, Crawford supports clients in working toward restoring operations as efficiently as possible based on the circumstances.
This is not a stopgap measure. It is a longer-term approach to managing supply chain constraints.
In an era where a single damaged transformer can delay a project for years, access to reliable equipment is no longer a procurement issue, it is a core risk factor. Crawford’s approach reframes that reality, helping clients better manage supply chain uncertainty and associated risks.
More broadly, the Crawford Power initiative reflects a fundamental shift in how the company defines its role. Crawford is not simply responding to risk events; it is seeking to support approaches that may help reduce the likelihood, severity, and duration of those events in the first place.
That is the difference between a claims provider and a risk solutions partner.
And as the data center boom accelerates bringing with it greater complexity, tighter timelines, and higher stakes this kind of innovation is expected to play an important role in how organizations build, recover, and operate over time.
Crawford intends to be at the center of that future.
This material is provided for general informational purposes only and does not constitute professional, legal, or insurance advice. Any statements regarding performance, timing, cost, or outcomes are indicative only and based on current market conditions and available information. Actual results and outcomes will vary depending on specific circumstances and external factors.
For inquiries or more information, please contact Kevin Gallagher at kevin.gallagher@us.crawco.com.
