Orbital AI data centers spark interest from insurers

Insurers are evaluating coverage for orbital AI data centers as the sector gains momentum with SpaceX, Blue Origin, and startups like Orbital and Lonestar Data Holdings signaling plans to deploy space-based data infrastructure. In New York and London, brokers discuss modeling risks such as launch failures, hardware degradation, and space weather, while valuing advanced AI chips in harsh space environments. The market, still in its infancy, is supported by roughly $500 million in annual premiums worldwide, according to AXA XL. Market participants say broader demand will grow once companies move beyond early venture funding to debt financing.