Ofer Shapira

Why AI data centers are moving into orbit

May 28, 2025 · 1 min read

Originally posted on LinkedIn, May 28, 2025.

“Data center to space station, do you copy? Over.”

It sounds crazy, but computing centers are leaving Earth. On May 14, China launched a group of satellites from the Gobi Desert. This was not just another launch. It marked the start of the first space-based data center network of its kind.

AI models are driving computing requirements at a pace traditional data centers cannot match. Some forecasts describe an absurd future in which data centers consume most of the world’s electricity.

Building data centers in space offers several advantages:

China’s ADA Space is building a constellation of 2,800 satellites as part of its Star-Compute project, putting China in position to set the pace. It is not alone. Red Hat, Axiom Space, and Starcloud are also joining the race.

This is not only a technology race. It is about controlling the ability to process information in real time, with minimal energy, and at astronomical scale. The future of data infrastructure may not be in an industrial zone in Ashdod, but in satellite orbit 500 km above Earth.

I assume some of the world’s best minds are already working on the digital energy crisis that is quickly approaching.

Illustration for “Why AI data centers are moving into orbit”