Arbol has begun offering insurance to data center investors and developers against financial losses caused by government-imposed moratoriums. If a construction ban remains in effect beyond a predetermined waiting period, the insurer pays out an agreed-upon amount.
The new product comes amid growing opposition from local residents to the large-scale construction of AI infrastructure. According to Data Center Watch, at least 106 data center projects worth approximately $198 billion were blocked or delayed by protests and opposition from local authorities in the first half of 2026.
Regional restrictions are adding to the pressure. For example, in August, Pennsylvania Governor Josh Shapiro signed an executive order tightening oversight of data center development.
Arbol assesses risks based on local conditions, including water availability, grid capacity, electricity rates, and the stance of local authorities. Policy costs depend on the region and the specifics of each project, while areas where moratoriums are already in effect are excluded from the program.
According to Arbol CEO Siddhartha Jha, companies developing projects worth tens of billions of dollars have already expressed interest in the insurance product. In 2025, Arbol’s insurance transaction volume reached $225 million, and the company expects to double that figure in 2026.
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