US startup Orbital aims to establish space-based data centres to meet growing AI computing demands, planning to launch its first satellite next year.
New Delhi, India Jul 5, 2026 ALN: It sounds like science fiction, but US-based satellite startup Orbital is looking to set up data centres in space that may power responses given by chatbots as artificial intelligence (AI) drives an unprecedented demand for computing power. As AI technologies continue to evolve, the need for substantial computing resources becomes increasingly critical. This trend is not only reshaping industries but also prompting innovative solutions to meet the growing demand for data processing and storage.
Orbital founder and CEO Euwyn Poon stated that the company plans its first data centre satellite launch next year on a shared payload. The company has filed an application with the Federal Communications Commission (FCC) seeking clearance to have 100,000 satellites in low Earth orbit (LEO) between 500 to 800 kilometres to deliver 10 gigawatts of compute to help process AI workloads. This ambitious plan reflects a broader trend in the tech industry where companies are looking to leverage satellite technology to enhance computing capabilities.
Orbital plans to scale up deployment towards the end of the decade when the SpaceX-owned Starship will come online and significantly reduce the launch cost, Poon said. The Starship program, which aims to create a fully reusable spacecraft, is expected to revolutionize access to space by making it more affordable and efficient to launch satellites. This reduction in costs could enable not only Orbital but also other players in the satellite industry to deploy larger constellations of satellites more rapidly, facilitating advancements in various applications, including AI.
“I actually agree that large-scale infrastructure, the kilometres-wide kind, is still science fiction in space today,” he told ET. “But what's practical now is what Starlink already demonstrates: you can put up small satellites — 10,000, 50,000, 100,000 of them — as Starship brings launch costs down. They’re large, yes, but not crazy large. So, the confusion is really about scale.”
Technology giants including Elon Musk’s SpaceX, Google, and Jeff Bezos’ Blue Origin, alongside startups such as Starcloud (formerly Lumen Orbit) and Kepler Communications, are exploring satellite-based compute that could harness uninterrupted solar energy and eliminate the need for millions of litres of water to cool down processors. This approach not only addresses the cooling challenges faced by terrestrial data centres but also capitalizes on the unique advantages of the space environment, where solar energy is abundant and accessible. By utilizing solar panels, these satellites could operate in a sustainable manner, reducing their carbon footprint compared to traditional data centres.
In fact, Musk has announced plans to launch one million satellites for AI data centres in space and has filed an application with the FCC. This ambitious initiative underscores the increasing interest in satellite-based computing as a viable solution to meet the demands of AI workloads. Musk's vision aligns with the growing recognition that the future of computing may involve a hybrid approach, combining terrestrial and orbital resources to optimize performance and efficiency.
Poon expects orbital compute to be complementary to terrestrial ones for the next 10 years or so. This perspective highlights the transitional nature of the computing landscape as companies adapt to the evolving technological environment. While orbital computing may not completely replace traditional data centres in the near term, it represents a significant evolution in how data is processed and managed.
“If total data centre capacity today is on the order of 100 gigawatts on earth, we can offload a meaningful chunk. Our 100,000 satellites get to 10 gigawatts — and with multiple companies, that alone could roughly double today’s capacity,” he said. The implications of this capacity increase are profound, especially as global data consumption continues to rise exponentially. By distributing computing resources across various platforms, companies can enhance redundancy, reduce latency, and improve overall system resilience.
Orbital’s compute in space will be primarily for inference, where trained AI models make predictions on new data, Poon stated. This focus on inference is particularly relevant as AI applications increasingly rely on real-time data processing to deliver insights and drive decision-making. The ability to perform inference in space could enable faster response and improved efficiency for applications ranging from autonomous vehicles to smart cities.
“We're betting inference will be the bulk of AI workloads going forward, because the models have reached maturity and consumers and applications are now discovering the use cases,” he said. This prediction reflects a broader trend in the AI landscape, where organizations are increasingly looking to implement AI solutions that can provide immediate value and actionable insights based on existing data.
The satellites that will be used for AI data centres would be smaller — roughly the size of a fridge — from where the solar panels and radiators extend out. “It's really ‘server racks in space’ — fridge-sized units at scale,” said Poon, who previously built a micro-mobility infrastructure company and sold it to Ford. This compact design emphasizes the potential for scalability and efficient use of space in orbit, allowing for the deployment of numerous satellites without requiring vast amounts of physical space. The development of smaller, more efficient satellites could also lead to advancements in satellite technology, enabling more sophisticated capabilities in the future.
As Orbital and other companies pursue this frontier of space-based data centres, several key implications arise. First, there is the potential for significant advancements in AI and machine learning capabilities, as access to vast computing resources could accelerate research and development in these fields. Second, the environmental impact of traditional data centres may be mitigated by the adoption of solar-powered satellites, contributing to a more sustainable future for technology. Finally, the competition among various companies to establish a foothold in the orbital computing market could drive innovation and lower costs, ultimately benefiting consumers and businesses alike.
In conclusion, Orbital's plans for space data centres represent a bold step into the future of computing. As the demand for AI processing power continues to grow, the development of satellite-based infrastructure could provide a viable solution to meet these needs while addressing environmental concerns. The intersection of space technology and AI is poised to create new opportunities and challenges in the coming years, reshaping the landscape of computing as we know it.
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