from sci-fi to reality: why your next data center might be floating 500 km above you

Since 1949, humanity has launched various objects and technologies beyond our atmosphere, and since 2007, Exellyn has been supportingcustomers all around the world, even in the most remote places on Earth. Yetone frontier remains unexplored: orbital data centers. As terrestrialfacilities increasingly confront limitations in land availability, escalating power demands, and cooling challenges, a few companies are turning their gaze upward. What once existed only in science fiction has evolved into a serious technological proposition, driven by decreasing launch costs. At Exellyn, we continuously monitor transformative innovations in the IT infrastructure market,and when The Economist talked about space-based data centers last month, it stood out as perhaps the most revolutionary development on our radar, so let’s explore further!

what are space-based data centers

Space-based data centers are exactly what theysound like: computing facilities orbiting Earth instead of being built on its surface. The concept involves launching computer hardware into low Earth orbit (LEO), where it would process and store data while communicating with ground stations. Companies like Starcloud (formerly Lumen Orbit) envision progressively scaling up from small satellite-sized computing platforms to eventually deploying warehouse-sized facilities powered by massive solar arrays spanning kilometers in width.

Unlike traditional data centers that occupy valuablel and and require complex cooling systems, orbital facilities would leverage the natural advantages of the space environment. These data centers would communicate with Earth using systems such as Starlink and potentially connect with each other using laser links that perform much better in the vacuum of space than on Earth.

why space makes sense

Orbital data centers are no longer just a futuristic concept; growing research and whitzepapers now highlight their compelling strategic advantages:

●     abundant, ultra-efficient solar power

Space-based solar arrays generate up to five times more energy than terrestrial equivalents, thanks to 24/7 sunlight and higher irradiance above the atmosphere. Starcloud claims this could enable energy costs as low as $0.002/kWh, compared to $0.045–$0.17/kWh on Earth. This not only slashes operational costs but also enablestruly sustainable, emissions-free computing at scale.

●     superior cooling

Data centers generate enormous heat that requires extensive cooling infrastructure on Earth. In space, passive radiators take advantage of the -270°Cenvironment, dissipating heat much more effectively per square meter than the best chillers on Earth, all this with no fresh water consumption. This could dramatically reduce the energy needed for temperature management, which typically accounts for a significant portion of a datacenter's power consumption.

●     no land constraints & unmatched scalability

As demand for data centers skyrockets (growing by 19–22% annually), finding suitable locations becomes increasingly challenging. Space eliminates land use concerns, providing unlimited room for expansion without competing for Earth's valuable real estate. According to Starcloud, a 5 GWorbital cluster (envisioned for future AI workloads) would require a 4 km² solar array and cost 20 times lessover a decade than a comparable terrestrial facility.

●     high-speed connectivity

With satellite networks like Starlink improving their latency (down to 33ms median in the US), the connectivity barrier is diminishing. Laser-based communications between satellites can potentially offer even faster data transfer than terrestrial fiber networks, thanks to the vacuum of space.

●     enhancedsecurity

Space-based data centers could offer unique security advantages. They would bypass terrestrial networks and reduce exposure to common cyber threats. Under space law, satellites are governed by the country of launch or license, which could have interesting implications for data sovereignty.

●     the AIand sustainability imperative

As artificial intelligence models grow ever larger, their energy requirements are ballooning. Training next-generation models like GPT-6 could demand 5 GW clusters - the equivalent to the output of a nuclear power plant. Orbital data centers, with their abundant renewable energy and efficient cooling, could be the only way to meet these demands sustainably. The EU’s ASCEND study confirms that such facilities can reduce emissions and eliminate the need for water-intensive cooling.

how close are we to this reality

While orbital data centers might sound futuristic, the timeline is accelerating rapidly. Starcloud, a Washington-based company, has secured $21 million in funding and plans to launch a 60-kilogram demonstrator satellite this summervia a SpaceX Falcon 9 rocket.

This initial test will run “100x more powerful GPU compute than has ever been operated in space, with top-of-the-line, data-center-grade terrestrial NVIDIA GPUs on board,” according to Starcloud CEO Philip Johnston. If successful, the company aims to begin commercial operations by mid-2026, with plans to scale up to larger facilities by the 2030s.

With SpaceX’s Starship, launch costs could drop to $10/kg, enabling 5 GW deployments via roughly 100 launches. Modular designs also allow incremental scaling, avoiding Earth’s land-use conflicts and enabling rapid expansion as demand grows.

challenges to overcome

Despite the promising outlook, significant hurdles remain and could jeopardize the whole project:

●       Launch Reliability: The viability of space-based data centers depends heavily on new, larger rockets like SpaceX'sStarship becoming reliable and achieving the promised cost reduction.

●      Radiation Protection: Space radiation poses a serious threat to computing hardware. In HP's test on the ISS, 9 out of 20 solid-state drives failed during an 18-month mission. Furthermore Starcloud calculations only take into account the price of a regular solar array, which will certainly need some protection as a bare cell would degrade in just a few days according to the European Space Agency.

●      Technical Reliability: Operating and maintaining hardware in orbit presents unique challenges. Systems must be designed for reliability as physical repairs are extremely difficult or impossible, and collision avoidance will also be a major concern.

exellyn’s perspective: bridgingtoday and tomorrow

At Exellyn, we pride ourselves on being global by design and circular by nature. Our expertise in delivering IT infrastructure solutions anywhere in the world positions us uniquely to understand the potential and challenges of frontier technologies like space-based datacenters.

While orbital computing facilities may still be a few years away from mainstream adoption, the underlying challenges they seek to address  - efficiency, sustainability,and global accessibility - align perfectly with our mission. Our solutions provide consistent, scalable, and global infrastructure options for our clients, anywhere in the world.

Since cooling your servers in space is still years away, Exellyn is here now to help you optimize your power efficiency and infrastructure sustainability on Earth. Our circular approach to IT lifecycle management ensures that we minimize environmental impact while maximizing performance and offering perfectly fit-for-purpose infrastructures.

As technology continues to evolve, Exellyn remainsc ommitted to providing cutting-edge IT infrastructure solutions that perfectly meet your needs today while preparing for the innovations of tomorrow. And who knows! With our track record of delivering even in the most remote locations ofthe world, maybe our next destination will indeed be in space.

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In the meantime, we'll keep our feet on the ground and our expertise at your service, ensuring your IT infrastructure remains as efficient,sustainable, and future-ready as possible wherever it may be located. Let’s get in touchtoday!