Article ID: 49159c6ade33ab822e4a9882ee534e1e6126b8de8e2b64d64e2791052ef6172d
Source ID: secondary:businessinsurance.com
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URL: https://www.businessinsurance.com/space-startups-seek-insurance-for-orbital-ai-data-centers/
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Space startups seek insurance for orbital AI data centers - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Space startups seek insurance for orbital AI data centers Aviation Axa , Lloyd's of London , Marsh & McLennan Jun 18, 2026 (Reuters) — Space companies have spoken with insurers about coverage for orbital AI data centers, a sign of early progress for an experimental industry backed by Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin. The concept of data center satellites — designed to bypass Earth’s power constraints — has drawn growing attention since Mr. Musk described them as the future of artificial intelligence development ahead of SpaceX’s record-breaking public listing this month. Securing insurance is critical for companies trying to move orbital data centers from concept to reality. Without coverage for the costly hardware and risks involved, attracting the debt financing needed to scale such ventures would be difficult. Blue Origin and a host of space startups, including Orbital, Starcloud, Lonestar Data Holdings and Cowboy Space, have also signaled their intention to launch space-based data centers. Reuters spoke to four brokers and underwriters and three space firms who said talks had taken place about orbital data center coverage, although they remain preliminary. Insurance broker Marsh said several companies have approached insurers to understand what future coverage for orbital data centers might entail, without naming the firms. “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, U.S. aviation and space practice leader at Marsh. Lonestar said it recently held a briefing at Marsh’s offices for insurance marketplace Lloyd’s of London, attended by about 25 insurers. SpaceX and Blue Origin did not respond to requests for comment. Insurers already cover launch failures, satellite malfunctions, orbital debris and space weather in a global space market that collects roughly $500 million in annual premiums, according to industry executives and insurance firm Axa XL, a division of Axa SA. But while insurers have decades of experience covering satellites, they have little data on orbital AI infrastructure. “The conversations in the market are focused on whether the risk can be modeled, rather than what the premium should be,” said Kasey Roh, U.S. head of Upstage AI, which develops AI tools for insurance companies. Part of the challenge is valuing rapidly advancing AI chips, which could be vulnerable to harsh conditions in space, said Orbital CEO Euwyn Poon. David Wade, space underwriter at Atrium, said venture-capital-backed startups would have to expand before there would be a major insurance market for orbital data centers. “Until we get past that early round of financing and start seeing some of these companies expand by raising debt, I think the insurance needs are very limited at the moment.” Related News CRC introduces middle-market property program June 18, 2026 Axa XL names former Everest exec global CUO June 18, 2026 Everest launches $600M casualty sidecar June 18, 2026 Insurers forecast double-digit premium hikes June 18, 2026 Maersk keeps shipping restrictions despite U.S.-Iran ceasefire deal June 18, 2026 Novo Nordisk confirms cyberattack on internal systems June 18, 2026 Cyber scams Asia’s most damaging digital threat: Interpol June 18, 2026 Achmea raises cat bond target to $115M June 18, 2026 U.S.-Iran truce unlikely to lift Middle East risk appetite June 18, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. 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