Orbital data centers could become a new market for insurers
Plans by technology and space companies to deploy computing power in orbit could open up a new market for the insurance sector. At the same time, insurers still need to learn how to assess risks that have not yet existed on a large scale, according to CNBC.
In January, SpaceX filed an application with the U.S. Federal Communications Commission for a constellation of up to 1 million satellites, which could potentially form an orbital data center for artificial intelligence. Elon Musk has stated that solar-powered computing in space could become cheaper than ground-based data centers within two to three years—provided that launch costs decrease and the cost of expanding energy infrastructure on Earth increases.
Jeff Bezos’s space technology company, Blue Origin, submitted plans in March for 51,600 satellite data centers in low Earth orbit. In May, Bezos called space-based data centers entirely realistic but noted that a two- to three-year timeline is somewhat ambitious. Google is exploring the Suncatcher project—a network of interconnected, solar-powered satellites equipped with their own AI chips. The startup Starcloud has already conducted an orbital flight with an Nvidia H100 graphics processing unit.
For more breaking news, follow the UA.News Telegram channel.
Patton Klein, head of Marsh’s aviation and space insurance practice in the U.S., told CNBC that insurers who focus solely on ground-based assets and do not view space as a new underwriting opportunity may miss out on a significant growth opportunity. According to him, there are about 30 insurers worldwide that specialize in space insurance, and the total annual premium volume in this segment ranges from approximately $500 million to $750 million.
At the same time, Andreas Berger, CEO of the global reinsurer Swiss Re, noted that such projects combine two rapidly growing types of risk—AI infrastructure and commercial space. In his view, there are currently too many unknowns to assess the risks with sufficient confidence and create a viable insurance offering.
Among the technical risks for orbital data centers, CNBC cites failed launches, radiation, equipment failures, heat dissipation issues, collisions, and space debris. Unlike ground-based facilities, repairing or replacing equipment in space may require a new launch.
