Space companies have begun preliminary talks with insurers about coverage for orbital artificial intelligence data centers, marking the industry’s first steps toward insuring an experimental technology that could reshape how AI infrastructure operates. The conversations, which Reuters reported on June 18, signal early progress for ventures backed by Elon Musk’s SpaceX and Jeff Bezos’ Blue Origin seeking to deploy solar-powered computing platforms in low Earth orbit.
Lonestar Data Holdings, one of the startups pursuing orbital AI infrastructure, recently held a briefing at insurance broker Marsh’s offices for Lloyd’s of London, the global insurance marketplace, attended by about 25 space insurers. Insurance broker Marsh confirmed that several companies focused on data centers and digital infrastructure have approached insurers to understand what future coverage for orbital data centers might entail, though the firm declined to name specific clients.
The push for insurance is critical. Without coverage for the costly hardware and operational risks involved in space-based computing, attracting the debt financing needed to scale orbital data centers would be difficult. Space companies including Orbital, Starcloud, Lonestar Data Holdings, and Cowboy Space, alongside SpaceX and Blue Origin, have signaled their intention to launch space-based data centers designed to bypass Earth’s mounting power and cooling constraints.
Securing insurance for orbital AI infrastructure presents a novel challenge for underwriters. The global space insurance market already covers launch failures, satellite malfunctions, orbital debris, and space weather in a market that collects roughly $500 million in annual premiums. Yet insurers have decades of experience with satellites but 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. Orbital CEO Euwyn Poon noted that pricing such components remains difficult given their technological volatility. David Wade, space underwriter at Atrium, suggested that venture-capital-backed startups would need to expand significantly before a major insurance market for orbital data centers would emerge. “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,” Wade said.
The broader space insurance market is growing. Research and Markets reported that the global space insurance market is expected to grow from $4.06 billion in 2025 to $4.43 billion in 2026, at a compound annual growth rate of 9.1%, driven partly by the surge in small satellite launches and emerging space ventures. The shift reflects a fundamental transformation in how insurers approach space risk—moving from massive traditional satellites to a booming ecosystem of smaller, experimental platforms.
Sources
- Reuters — reported on space companies’ preliminary insurance discussions with Lloyd’s of London and about 25 insurers, including Lonestar Data Holdings’ briefing, quotes from Patton Kline at Marsh, Kasey Roh at Upstage AI, Euwyn Poon at Orbital, and David Wade at Atrium; confirmed global space insurance premiums at roughly $500 million annually
- Research and Markets — provided 2025–2026 space insurance market valuation and growth rate data
