Space data center investment surge raises risks for astronomy and orbital security

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Space data center investment risks

Highlights

Investment in orbital data centers surged from $197 million in 2025 to $1.11 billion so far this year, per Quilty Space.
SpaceX, Starcloud, and Blue Origin's Project Sunrise filed to deploy 1 million, 88,000, and 51,600 data center satellites respectively, prompting collision and debris concerns.
Innovation for Cool Earth Forum report warns rapid orbital data center expansion could threaten astronomy, escalate military risks, and worsen greenhouse gas emissions.

Report warns on deployment risks

As reported by Axios, researchers in a report for the Innovation for Cool Earth Forum say companies and policymakers should move cautiously before putting large numbers of AI-powered data centers into orbit.

The report says sprawling networks of satellites could make stargazing far more difficult if the technology proliferates, with satellites becoming the most visible points of light in the night sky across much of the world. It also warns that if the U.S. military adopts orbital data centers, they could become targets in future space conflicts.

Researchers add that thousands of facilities circling Earth at roughly 17,000 miles per hour would raise collision risks and worsen the accumulation of dangerous space debris. Although the systems are solar-powered once in orbit, the report says the rocket launches needed to deploy them would generate greenhouse gases and black carbon emissions.

David Sandalow of Columbia University, the report's lead author, tells Axios there are still "unknown unknowns" about the effects of space data centers. He says any rollout should happen slowly and carefully rather than through rapid launches before the risks are understood.

Funding momentum builds across the sector

Even with those concerns, capital is flowing into the segment. Market research firm Quilty Space says about $197 million of investment was tied to orbital data centers in 2025, and that total has risen to $1.11 billion so far this year.

Companies are also outlining very large deployment ambitions. SpaceX has applied for a constellation of 1 million data center satellites, while Starcloud and Blue Origin's Project Sunrise are targeting 88,000 and 51,600 satellites respectively.

Caleb Henry, Quilty Space's director of research, says some filings may overstate what operators will ultimately deploy because companies do not want to seek larger authorizations later. Researchers say governments and businesses should wait until the risks and broader impacts are better understood and managed before moving ahead with orbital data center launches.

We have also analyzed Samsung's AI infrastructure expansion as the company moved beyond memory chips into data centre construction and services.

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