The summer heat is hitting data centers hard — and outages and downtime may only get worse

• 54% of global data center capacity is at risk of temperature-related climate stress
• Before damage even occurs, operating costs can soar to keep up with cooling demands
• Future projects should focus on temperature projections and resource availability

A new First Street report has identified extreme heat as one of the most significant long-term risks that data centers face worldwide, with rising global temperatures, higher hardware power density and strained cooling demands all contributing to the problem.

More than half (54%) of the global data center capacity surveyed is now said to be located in markets that expect to face growing chronic climate risks like rising temperatures, more frequent heatwaves, drought and water stress.

But besides causing physical damage, rising temperatures can also add to operational costs simply by demanding more cooling capacity, the report argues.

Heat is a data center's worst enemy

Higher temperatures mean cooling systems need to work harder to keep servers within safe temperature ranges, leading to higher electricity consumption, lower cooling efficiency, greater wear on cooling equipment and potentially all server hardware if optimal temperatures aren't maintained, and higher operational and maintenance costs.

With cooling already one of the largest ongoing expenses for data centers, rising temperatures could compound the effects.

Summer 2026 is already proving to be a stress test for data centers in the Northern Hemisphere, with temperature records being broken across Europe and North America where around 50% and 46% of capacity respectively is located in chronic heat and drought regions. As much as 89% of Asia-Pacific capacity faces the same challenges.

Looking ahead, the report concludes that future data center investments should focus on future temperature projections rather than historical climate data, and the availability of power and water to support long-term cooling operations.

Companies could also look to locate campuses in low-risk areas, which have so far seen comparatively slower development.

"As digital infrastructure continues to expand globally, institutions that incorporate climate risk into site selection, underwriting, and capital allocation decisions will be better positioned to identify resilient opportunities and manage long-term exposure," the firm says.