Drone Strikes on Yandex Data Centers: A Challenge for Supercomputer Underwriting and AI Infrastructure Physical Risks

The drone strikes on Yandex's major data centers in Sasovo and Kaluga on October 8 and 9 have exposed a new reality in the insurance of technological infrastructure. These events were not merely technical disruptions but a significant challenge for the underwriting of the physical security of supercomputers used for training artificial intelligence (AI).

The Sasovo data center houses two of the company's three supercomputers, 'Lyapunov' and 'Chervonenkis,' used to train the YandexGPT model. While the company has not confirmed direct damage to the servers themselves, the full shutdown of the facilities created critical risks for business continuity (BI). From an actuarial perspective, this incident expands the boundaries of 'war exclusions' in property insurance contracts. While the focus was previously on cybersecurity, the physical location of infrastructure in conflict zones is now a key risk factor requiring a review of insurance premiums.

For insurers, the situation highlights the issue of 'uninsurability' and the complexity of policy wording. If data centers were previously insured primarily against fire or technical failure, the frequency of drone attacks and their impact on AI infrastructure now necessitate the adoption of new parametric insurance models.

From an actuarial standpoint, such events alter the methodology for assessing balance-sheet losses and business interruption costs. For Kazakhstan and Central Asia, this case serves as a signal to review risk management strategies for critical digital infrastructure, where physical protection is becoming as vital as cybersecurity.

Actuarial conclusion: Physical attacks on AI infrastructure signify the convergence of 'war risks' and 'cyber-physical' threats in insurance models. This will inevitably lead to stricter requirements for physical security and geographic diversification when underwriting data centers.

Source: Startup Fortune, October 11, 2024.