Silicon Valley has officially run out of electricity on Earth. The latest idea to keep the AI boom humming is simple in theory and wild in execution: put data centers in space.
The pitch is that orbital data centers could sidestep grid bottlenecks, environmental permitting, and land constraints that are slowing AI infrastructure on the ground. And as hyperscalers race to secure compute at any cost, investors are starting to ask which companies could benefit if this sci-fi concept inches closer to reality.
Why Space Is Suddenly on the Table
AI’s biggest constraint right now is not chips, models, or talent. It’s power. Data centers are swallowing electricity faster than grids can expand, and regulators are not exactly speeding things up.
That’s where space comes in. Advocates argue that orbital data centers could tap solar energy, avoid local zoning fights, and operate independently of terrestrial power markets. Elon Musk’s SpaceX is reportedly exploring upgrades to future satellites to handle compute workloads, and the company is expected to pursue an IPO as early as next year, according to Bloomberg.
The idea is still experimental, but in an AI arms race, even long-shot solutions are getting serious attention.
The Public Stocks Tied to the Theme
While SpaceX and Blue Origin remain private, Deutsche Bank highlighted several publicly traded companies that could benefit if space-based computing gains traction.
Planet Labs $PL ( ▲ 10.86% ) is working with Alphabet $GOOGL ( ▲ 0.72% ) on Project Suncatcher, which aims to deploy solar-powered satellites carrying Google’s tensor processing units. Two prototypes are expected to launch by early 2027.
Rocket Lab $RKLB ( ▲ 17.19% ) sits in a sweet spot. It can manufacture satellites at scale, build key components like solar panels in-house, and eventually launch data-center satellites using its reusable Neutron rocket, which is expected to debut next quarter.
Intuitive Machines $LUNR ( ▲ 34.24% ) could also play a role following its planned acquisition of Lanteris Space Systems in early 2026. Lanteris has experience designing satellites that handle extreme power and heat loads, two of the hardest problems for orbital data centers.
On the hardware side, Nvidia $NVDA ( ▲ 3.74% ) already has skin in the game through its backing of Starcloud, a startup that recently sent a satellite equipped with an H100 GPU into orbit.
The Economics Are Still Brutal
For now, space data centers are far from cheap. Researchers estimate they are three to four times more expensive than Earth-based facilities. Radiation degrades chips faster, cooling is difficult, maintenance is nearly impossible, and launch costs remain high.
Still, as Alphabet $GOOGL ( ▲ 0.72% ) has noted, if launch costs fall below $200 per kilogram over the next decade, the math starts to look less insane.
The takeaway: space-based data centers are not replacing terrestrial ones anytime soon. But in an AI boom defined by power shortages, even far-out ideas can move stocks when the right companies are involved.