Space startups seek insurance for orbital AI data centres

Space companies have spoken with insurers about coverage for orbital AI data centres, a sign of early progress for an experimental industry backed by Elon Musk's SpaceX and Jeff Bezos' Blue Origin.
The concept of data centre satellites — designed to bypass Earth’s power constraints — has drawn growing attention since 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 centres 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 signalled their intention to launch space-based data centres.
Reuters spoke to four brokers and underwriters and three space firms who said talks had taken place about orbital data centre coverage, although they remain preliminary.
Insurance broker Marsh said several companies have approached insurers to understand what future coverage for orbital data centres might entail, without naming the firms.
"We're already starting to see companies that are focused on data centres 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.

-Reuters