Blue Origin Joins SpaceX in the Race to Put Data Centers in Space

Blue Origin has filed with the FCC to deploy nearly 52,000 solar-powered satellites for orbital AI computing, joining SpaceX and startup Starcloud in the emerging — and controversial — race to move data centers into space.

The filing follows SpaceX's own audacious request earlier this year to launch one million data center satellites into low Earth orbit. SpaceX's proposal described the project in sci-fi terms, calling it a "first step towards becoming a Kardashev II-level civilization — one that can harness the Sun's full power." The satellites would communicate via lasers and rely on solar power, eliminating the need for terrestrial electricity and water cooling.

The pitch is compelling: traditional data centers are facing a massive backlash. Communities are fighting their construction over concerns about water usage, groundwater pollution, rising electricity costs, and noise. Orbital data centers would radiate heat into the vacuum of space, run on solar energy, and bypass NIMBY opposition entirely. But experts remain deeply skeptical — the European Space Agency estimates about 15,000 satellites currently orbit Earth, and even a fraction of these proposals would dramatically increase orbital congestion and space debris risks.

Our Take

There's something both inspiring and absurd about the tech industry's response to community opposition to data centers being... leaving the planet entirely. The engineering challenges are immense — latency, maintenance, launch costs, and the sheer logistics of deploying tens of thousands of satellites. But the underlying pressure is real: AI demands exponentially more compute, and Earth-bound data centers are hitting political and environmental walls. Whether orbital data centers become reality or remain a negotiating tactic for FCC spectrum allocation, the fact that multiple billionaires are seriously pursuing this tells you everything about where the AI infrastructure crisis stands.

Key Takeaways

• Blue Origin seeks FCC approval for ~52,000 solar-powered data center satellites
• SpaceX previously filed for 1 million orbital data center satellites
• Startup Starcloud has also filed similar applications
• Orbital data centers would eliminate water cooling and terrestrial power needs
• Experts warn of dramatically increased space debris and orbital congestion risks

Source: The Verge, Bloomberg