Insurers Assess Coverage Needs for Orbital AI Data Centers

Space‑focused companies, including Blue Origin‑backed startups such as Orbital, Starcloud, Lonestar Data Holdings and Cowboy Space, have begun talks with insurers about policies for orbital artificial‑intelligence data centers. The discussions, reported by Reuters, involve major brokers like Marsh and underwriters at Lloyd’s of London, aiming to model risks for hardware that operates in space’s harsh environment.

Current space insurance covers launch failures, satellite malfunctions, debris and space‑weather events, but insurers lack data on AI‑specific hardware. "We’re already starting to see companies that are focused on data centers and companies that are focused on digital infrastructure looking to the insurance community for support," said Patton Kline of Marsh. Industry insiders note that a viable market will likely emerge only after these venture‑backed firms secure larger debt financing and expand their operations.

The emerging sector’s annual premiums are modest—about $500 million globally—but could grow as orbital data centers move from concept to deployment, potentially reshaping how AI workloads are powered.