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This Startup Wants to Tackle AI Energy Demands With Data Centers in Space

Lumen Orbit says outer space is an ideal place to run a data center, citing 'abundant solar energy, cooling, and the ability to freely scale up.'

 & Michael Kan Principal Reporter

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(Lumen Orbit)

A US startup is looking to build data centers in perhaps the last place you’d expect: outer space. 

The idea comes from Lumen Orbit, which released its first white paper on Tuesday, touting the benefits of space-based data centers. 

The concept may seem far-fetched, but operating data centers in space could solve the growing energy demands of today's AI development. To train next-generation AI programs such as ChatGPT, companies are building larger and larger data centers packed with GPUs, which can require electricity to both operate and cool. 

The escalating energy needs raise questions about how AI development will continue without straining today’s electricity supplies or generating more pollution. In response, the Redmond-based Lumen Orbit is pushing the tech industry to consider space as the ideal home for next-generation data centers. 

“We should train future large AI models in space to make use of abundant solar energy, cooling, and the ability to freely scale up,” Lumen Orbit CEO Philip Johnston said earlier this week. 

(Credit: Lumen Orbit)

The whitepaper elaborates on the concept, with the company estimating that a space-based data center would only cost $8.2 million to run over a 10-year period, compared with $167 million to run ground-based computing. That $8.2 million includes the estimated $5 million necessary to launch the data center, which would adopt a modular design. 

To harness solar energy, Lumen Orbit envisions connecting the space-based data center to a huge solar array measuring 4 kilometers by 4 kilometers. This promises to bring down the energy costs for a data center to $2 million over a 10-year period, a vast reduction from the $140 million power needs for an equivalent data center on the ground.

(Credit: Lumen Orbit)

To build the data centers, Lumen Orbit wants to use new spacecraft, including SpaceX’s Starship vehicle, which has also been designed to one day send humans to Mars. The startup is betting that "falling launch costs" will allow easier access to Earth’s orbit, making it economical to build and maintain space-based data centers.

"We are convinced that orbital data centers are feasible, economically viable, and necessary to realize the potential of AI, the most important technology of the 21st century, in a rapid and sustainable manner," the whitepaper adds. 

(Credit: Lumen Orbit)

Still, building a space-based data center won’t be easy. One unique challenge is protecting the technology from solar radiation. The whitepaper also notes the need for "radiators" to efficiently dissipate the heat on the solar array. "This component represents the most significant technical challenge required to realize hyperscale space data centers," the paper says. 

To demonstrate the concept, Lumen Orbit has booked a space launch to send up a prototype satellite weighing 132 pounds next May, with the goal of training the first AI model in space. In 2026, the company also aims to launch a “micro data center.”

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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