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Why data centers could be the next big market for catastrophe bonds

Source: CNBC

Credit & Bond MarketsInfrastructure & DefenseNatural Disasters & WeatherArtificial Intelligence

Catastrophe bonds could begin transferring data-center risk to capital markets, with the first dedicated issuance potentially arriving within 12 to 18 months. The development would create a new risk-financing channel for rapidly expanding data-center infrastructure, though no transaction terms or issuer have been disclosed.

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