Legal risks for data centres have significantly increased, with large lawsuits more than tripling from four in 2021 to 14 in the first half of 2026, a Howden report indicates. This rise coincides with data centres scaling up, consuming more power, and attracting greater community scrutiny.
The main drivers behind these legal disputes are planning and environmental issues. Noise and nuisance complaints, including those related to diesel generator emissions and water consumption, have become more common, accounting for 78 per cent of the growth in liability cases over the past three years.
Globally, data centre infrastructure is also facing increased exposure to geopolitical instability. In 2025, data centre space located near active global conflict zones was equivalent to approximately 60 per cent of the total recorded over the previous five years combined. Earlier this year, five data centres in the UAE and Bahrain were reportedly struck by Iranian drones during the early stages of the US war in Iran, marking the first deliberate wartime targeting of commercial data centres.
Edward Howland Jackson, chief commercial officer, global specialty, Howden, stated that the AI boom is fuelling significant investment in data centres, but the associated risks are wide-ranging and increasingly complex. He added that understanding where these risks are concentrated is critical for operators, developers, and investors.