2026-10-20 · Source: Insurance Journal
Summary in 3 Points • Arbol launched a new policy protecting data center developers against government-imposed moratoriums on construction. • The policy aims to calm investor nerves amid rising local opposition to data center projects across the US. • Arbol transacted roughly $225 million in gross written premiums last year, up from $2 million in 2020. --- Arbol, a New York-based insurer, has introduced a policy designed to protect data center developers and financiers from government-imposed moratoriums that can halt construction. This new offering addresses a growing risk in the AI sector, where at least 106 data center projects worth approximately $198 billion were blocked or delayed in the first half of this year due to local opposition. The policy provides a predetermined payout if a moratorium extends beyond an agreed waiting period, filling a gap in traditional insurance that typically does not cover regulatory hurdles. The launch comes as Big Tech faces increasing resistance to infrastructure expansion, with lawmakers enacting temporary halts on new developments. Arbol's CEO, Siddhartha Jha, noted that the company has seen significant interest from firms representing tens of billions in construction value since reaching out through brokers. With a focus on localized data analysis for underwriting, Arbol aims to navigate the complexities of regulatory exposure, positioning itself as a key player in this emerging market. Arbol's new policy for data centers addresses regulatory risks, reflecting a shift in insurance needs amid evolving local opposition to infrastructure projects.
Arbol's new policy for data centers addresses regulatory risks, reflecting a shift in insurance needs amid evolving local opposition to infrastructure projects.