Tech firms race to build solar-powered data centers in space

November 06, 2025 (MLN): US startup Starcloud has launched a refrigerator-sized satellite containing an Nvidia GPU into orbit, marking what the chipmaker hailed as a “cosmic debut” for mini-data centers in space.

The move shows growing interest from tech giants in shifting AI computing infrastructure beyond Earth to tap into the sun’s limitless energy and natural cooling advantages, APP reported.

Starcloud CEO Philip Johnston said it will soon make more sense to build data centers in orbit than on Earth.

The concept is gaining momentum as Google this week shared plans for test satellites by 2027 under its Suncatcher project, while Elon Musk claimed SpaceX could deploy orbital data centers next year using its Starlink network.

Proponents say clusters of low Earth orbit satellites could link through lasers to terrestrial systems, enabling high-speed data transfer.

Experts like University of Arizona professor Krishna Muralidharan believe the technology could be commercially viable within a decade, though challenges remain.

Major hurdles include radiation damage, extreme temperatures, and the risk from space debris, according to University of Michigan assistant professor Christopher Limbach, who argues that costs, not feasibility, are the biggest obstacle.

Advocates highlight that space offers constant solar power, no land-use conflicts, and reduced environmental impact, aside from rocket emissions. Cooling needs could mirror those of the International Space Station, relying on radiators and recycled liquids.

Falling launch costs are also fueling optimism. SpaceX’s reusable Starship rocket could cut expenses by up to 30 times, making orbiting data centers potentially cost-competitive by the mid-2030s, said Suncatcher project head Travis Beals.

“If there ever was a time to chart new economic paths in space or reinvent old ones it is now,” Limbach said.

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