New York-based specialty insurer Arbol has introduced a parametric insurance product, Data Center Regulatory Moratorium Cover, designed to protect developers and financiers from losses caused by government-mandated construction halts.
The policy triggers a fixed payout after a specified waiting period if regulatory actions freeze a project. Premiums are determined by local factors such as grid capacity and the historical regulatory environment of the site.
The launch follows a surge in public opposition to AI infrastructure. According to a March 2026 Gallup poll, 71% of Americans oppose the construction of AI data centers in their local communities.
Data indicates that in the first half of 2026, at least 106 AI data center projects, with a combined value of approximately $198 billion, faced delays or blocks due to concerns over energy and water usage.
Founded in 2018 by former Citadel strategist Siddhartha Jha, Arbol focuses on specialty insurance risks. The company projects its 2026 gross written premiums to reach $450 million, up from $225 million in 2025.
