The Future of Data Centres: Building Infrastructure in Space

The rapid growth of artificial intelligence and cloud computing has sparked an unprecedented demand for data centres. These data centres, the backbone of digital infrastructure, require enormous amounts of energy and space—resources increasingly constrained on Earth. To address these challenges, several technology companies and startups are pioneering an extraordinary solution: building data centres in space.

Leading the charge is Google, which unveiled its ambitious "Project Suncatcher" in 2025. The project aims to develop scalable AI data centers in low Earth orbit, powered primarily by solar energy. Google plans to launch prototype satellites equipped with AI chips by early 2027. These satellites will operate in tight formation linked by ultra-high-speed optical connections, effectively mimicking the connectivity and computing capacity of terrestrial data centres. Space offers distinct advantages, such as nearly continuous sunlight exposure, enabling solar panels to generate up to eight times more power than on Earth. Cooling these data centers is also easier, as the vacuum of space acts as a natural heat sink, eliminating the water-intensive cooling systems used on land. Despite these benefits, many challenges remain, including radiation tolerance, space debris management, and equipment durability in the harsh orbital environment.

SpaceX founder Elon Musk announced that his company is preparing to deploy data centers in orbit, leveraging its Starlink satellite network. SpaceX anticipates readiness potentially as soon as 2026, powered by the vast connectivity of its satellite constellation. Meanwhile, the startup Starcloud recently launched a compact satellite housing a powerful Nvidia GPU, marking a notable milestone for mini space-based data centers. Starcloud predicts that within a decade, the majority of new data centres could be ex

clusively built in space, citing significant energy cost reductions and ecological benefits associated with off-Earth operations.​

Axiom Space, another key player, is capitalizing on its commercial space station platform to develop orbital data center nodes. Supported by NASA’s Commercial Low Earth Orbit Development Program, these nodes aim to provide cloud-enabled storage and AI/ML processing capabilities directly in orbit. The system will use laser-based high-speed intersatellite communication, creating a resilient network independent of terrestrial infrastructure. Axiom’s vision foresees a scalable network expanding from kilowatt to megawatt levels of computing power in orbit, addressing data sovereignty and security needs.

The concept of space-based data centers is gaining traction globally. In 2025, China launched a constellation of 12 satellites—part of a wider plan to deploy nearly 2,800 satellites—to handle in-orbit data processing. This approach reduces latency and bandwidth burdens by processing data closer to its source, such as Earth observation satellites. Other global initiatives aim to leverage space’s abundant solar energy to reduce data centre carbon footprints. European projects like ASCEND and industrial collaborations in the Middle East highlight space data centres' potential for sustainability and sovereignty in data hosting.​

Despite exciting prospects, economic and technical challenges persist. Launch costs have historically been prohibitive but are expected to dramatically decrease thanks to reusable heavy-lift rockets like SpaceX’s Starship, promising up to a 30-fold cut in expenses. Engineers are tackling the intricacies of radiation shielding, thermal management, and debris avoidance. Experts estimate widespread commercial viability could emerge within the next decade as technology matures and costs fall.​

In conclusion, the space-based data centre revolution is unfolding. By harnessing solar power, vacuum cooling, and cutting-edge AI hardware, companies like Google, SpaceX, Starcloud, and Axiom Space are redefining digital infrastructure's future. While challenges remain, the potential for more sustainable, scalable, and decentralised data centres located beyond Earth’s atmosphere could transform how data is stored, processed, and accessed in the era of AI and beyond.