Tech Giants and Startups Race to Build Orbital AI Data Centers

Multiple technology firms are racing to move artificial intelligence compute into orbit to escape terrestrial energy constraints. Cowboy Space Corporation, formerly Aetherflux, raised $275 million in Series B funding led by Index Ventures to deploy solar-powered data centers. Founded by Baiju Bhatt, the San Carlos-based company intends to launch its first satellite in 2026 to demonstrate power beaming, followed by a laser communications mission in 2027 and a proprietary rocket launch in 2028. Their Stampede constellation utilizes rocket upper stages as 1-megawatt data center hubs.

Simultaneously, Google LLC is negotiating with SpaceX to support Project Suncatcher, an initiative launched in November 2025 to deploy prototype satellites equipped with Tensor Processing Units by 2027. Elon Musk has expressed ambitions to deploy up to a million solar-powered satellites for orbital compute, prompting him to merge SpaceX with his AI business in preparation for an initial public offering with a projected valuation between $1.5 trillion and $1.7 trillion.

Despite these ambitions, industry experts warn that the venture faces steep technical and financial barriers. Current launch costs remain significantly higher than the $200 per kilogram threshold deemed necessary for economic viability.