AI INSURANCE
Insuring against angry neighbours
As more US communities push back against AI data centres, one insurance company has spotted a new business opportunity: protecting developers when governments put construction on hold.
New York-based insurer Arbol has launched a new policy that pays developers and investors if government restrictions delay or stop their data centre projects.
Unlike regular insurance, which usually covers physical damage, this policy covers delays caused by government decisions.
The move comes as Big Tech faces growing concerns over how much electricity, water and space its data centres need.
According to Data Center Watch, at least 106 US data centre projects worth around $198 billion were blocked or delayed in the first half of 2026.
In brief:
Developers receive a set payout if government restrictions last longer than an agreed period.
Insurance costs depend on the location, available water and electricity, and local government rules.
Companies with tens of billions of dollars in planned data centre projects have already shown interest.
The insurance industry smells blood. And premiums
The insurance is available across the US, although places with existing construction bans aren't covered.
Experts say it could help ease investors' concerns, but offering the policy on a larger scale may prove difficult.
This has big “the job you will do when you’re older doesn’t even exist yet” vibes -MV