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Billionaires pose beside a glowing data-center rack as a rocket launches a satellite against a star-filled low-Earth orbit.

Editorial illustration for BillIonInvestors Eye Data Centers on Earth's Earth in Low--Earth Orbit alternate: Bill:ionaires Seek Business Expansion Beyond and Space Data...

Tech Billionaires' Next Frontier: Data Centers in Space

Billionaires push for data centers on Earth and in low-Earth orbit

Updated: 3 min read

The race for digital real estate is taking an unexpected leap, quite literally. As tech billionaires hunt for new frontiers of computational power, their gaze is shifting from terrestrial data centers to the vast, unexplored territory of low-Earth orbit.

The potential for space-based computing represents more than just a technological curiosity. It's a high-stakes gamble that could redefine how we think about data infrastructure, processing, and global connectivity.

But this isn't a simple matter of launching servers into space. The challenges are complex and unusual. Human operators are already scarce on Earth, and the logistics of maintaining satellite-based systems present a whole new set of technical hurdles.

With billions of dollars and technological ambition on the line, one critical question emerges that will shape the future of this bold frontier. It's a query that cuts to the heart of a potentially major business opportunity, and the long-term sustainability of our orbital ecosystem.

"How do we keep low Earth orbit open for business for generations to come?" Practically, data centers on Earth require regular maintenance to keep the racks of chips humming along, and trained human operators are already in short supply. Repairs of satellites in space, meanwhile, don't happen. Astronauts fix telescopes and equipment attached to the International Space Station or NASA's Hubble Space Telescope.

The prospect of robots reorienting or refueling satellites in orbit is theoretically possible but rare. Despite earthly wariness from astronomers outside Big Tech, the popularity of space data centers is likely to continue for years and even decades. Both Google and startup Aetherflux plan to launch satellites in early 2027.

Starcloud plans to launch its second satellite in October 2026 and then "ramp up production in 2027, 2028," Johnston said. He views SpaceX as Starcloud's main competitor, despite no official mention from Musk's company on when a space data center might be launched, only a post on X from Musk about SpaceX "simply scaling up Starlink V3 satellites" to achieve this. Blue Origin has reportedly been working on space data centers for over a year but has also not publicly commented on any plans.

Constellations close to Earth present good opportunities for "trying to make life better here back on Earth," space scientist Akhavan-Tafti said. But it needs to be done in a sustainable way: "How do we keep low Earth orbit open for business for generations to come?" One option? Avoid launching more stuff into orbit, according to Seth Gladstone of Food & Water Watch, the environmental group leading a petition to halt data center construction.

"Why is it that Big Tech always seems to think a solution to its many Earth-bound problems is to blast more stuff into space?"

The push for data centers in low-Earth orbit reveals more questions than answers. Billionaires are eyeing space expansion, but practical challenges loom large.

Maintenance remains a critical hurdle. Earth-based data centers already struggle with trained human operators, suggesting orbital installations would face even steeper technical barriers.

Space repairs aren't simple replacements. While astronauts can fix equipment on the International Space Station, standard satellite maintenance doesn't happen routinely.

Robotic interventions remain theoretical. The possibility of autonomous systems reorienting or refueling satellites exists, but current capabilities fall short of smooth operation.

The central question driving this exploration is compelling: how can low-Earth orbit remain a viable business environment for generations? Yet the technical infrastructure to support such ambitions appears fragile.

Billionaires might dream of orbital data centers, but the reality demands solving complex logistical and technological challenges. For now, the vision outpaces our operational capabilities.

Common Questions Answered

Why are tech billionaires interested in data centers in low-Earth orbit?

Tech billionaires see low-Earth orbit as a potential new frontier for computational infrastructure and global connectivity. The space-based data centers represent a high-stakes technological opportunity to expand digital real estate beyond traditional terrestrial limitations.

What are the primary maintenance challenges for data centers in low-Earth orbit?

Unlike terrestrial data centers with trained human operators, space-based installations face significant maintenance obstacles. Current satellite repair capabilities are extremely limited, with only astronauts able to perform complex repairs on specific equipment like those on the International Space Station.

How might robotic intervention change satellite and data center maintenance in space?

The prospect of robotic satellite reorientation and refueling is currently theoretical but represents a potential solution to maintenance challenges in low-Earth orbit. Such technological advances could dramatically improve the feasibility of long-term space-based computational infrastructure.