With the launches of the Chandra X-ray Observatory and XMM-Newton, high resolution X-ray spectra of cosmic sources are broadening our understanding of the physical conditions, such as temperature, density, ionization state, and elemental abundances. X-ray emitting astrophysical plasmas can be generally classified by their dominant ionization mechanism, either collisional ionization or X-ray photoionization. The atomic data needs are significantly different for these two cases; however, for both cases it is important that we identify robust and accurate diagnostics and that we verify completeness of the broadband models. We discuss the status of the atomic data currently used in atomic databases for X-ray astronomy, in view of theoretical and experimental atomic physics considerations.