The global race to build AI infrastructure has moved beyond Earth. Tech giants and emerging space startups are preparing to deploy AI-powered data centres in orbit, aiming to solve challenges related to energy consumption, cooling limitations, and the rising demand for high-performance computing.
A major breakthrough is expected next month when Starcloud, a Washington-based space-tech startup, launches a satellite equipped with an Nvidia H100 graphics processing unit (GPU). According to a CNN report dated October 21, 2025, this mission will be the first real-time test of an AI superchip running entirely from space.
Why AI Data Centres Are Moving to Space
1. Lower Cooling Costs
Space offers a naturally cold environment, helping reduce the massive energy traditionally required to cool Earth-based data centres.
2. Abundant Solar Power
Solar radiation in orbit is stronger and uninterrupted, ensuring a stable power source for AI workloads.
3. Reduced Pressure on Earth’s Power Grids
Modern GPUs such as the Nvidia H100 consume significant electricity. Moving processing to space helps ease strain on national grids.
4. Stronger Data Security
Physical access to satellites is nearly impossible. This makes orbital systems more secure from hacking or hardware tampering.
5. Exploding Market Growth
Industry reports estimate the in-orbit data market could reach $39 billion by 2035. Big tech companies are positioning themselves early.
Who Is Leading the Space-AI Race?
Several major players are exploring orbital compute:
Microsoft and Google have filed patents for space-based cloud systems.
SpaceX and Blue Origin are developing satellite buses capable of hosting compute modules.
Defense agencies are evaluating secure AI processing for surveillance and battlefield simulations.
Technical Challenges
Despite the promise, orbital AI computing faces hurdles:
High launch and maintenance costs
Space radiation that can damage hardware
Difficulty repairing or upgrading in orbit
Latency concerns for Earth-bound users
Even with these obstacles, investment continues surging. The industry sees space-based AI as the next major leap after cloud computing.
Why This Matters
AI models are growing exponentially in size and complexity. Traditional data centres are struggling with power shortages, cooling limits, and environmental impact. Orbital compute may become the next-generation infrastructure powering advanced AI systems, autonomous vehicles, global networks, and defense analytics.
If Starcloud’s Nvidia H100 mission succeeds, it will mark the beginning of a new era where AI literally operates beyond Earth’s boundaries.
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