Orbital Startup Files Plans for 100,000 Space Data Centre Satellites to Power AI Computing

In what reads like science fiction but is a very real regulatory filing, a five-month-old US startup named Orbital has asked the Federal Communications Commission for permission to deploy up to 100,000 data centre satellites into low Earth orbit. The company aims to deliver 10 gigawatts of computing power from space to meet the surging demand for artificial intelligence inference workloads.

What Orbital Is Proposing

Orbital's filing with the FCC, submitted in late June 2026, outlines a constellation of 100-kilowatt-class satellites operating at altitudes between 500 and 850 kilometres. Each satellite would carry solar arrays and radiators spanning roughly 100 metres, with a dry mass of 1.5 to 2.5 metric tonnes. Unlike traditional communications satellites, these spacecraft are designed primarily to process data in orbit, handling AI inference tasks where trained models make predictions on new data.

Orbital CEO and founder Euwyn Poon, who previously founded micromobility company Spin and sold it to Ford, told SpaceNews that the filing is an early regulatory step as the company finalises satellite design. "If total data centre capacity today is on the order of 100 gigawatts on earth, we can offload a meaningful chunk. Our 100,000 satellites get to 10 gigawatts — and with more efficient designs, that number could grow," Poon said.

Why AI Inference in Space Makes Sense

The primary data path for Orbital's system would rely on optical intersatellite links with third-party constellations such as SpaceX's Starlink. Poon said the company is betting that inference — where trained AI models process new data to produce outputs — will be the bulk of future AI computing demand. Space-based data centres benefit from several natural advantages: roughly five times greater solar irradiance than ground-based panels, passive heat rejection via the vacuum of space, and no requirement for land acquisition, power grid connections, or water for cooling.

"We're betting inference will be the bulk of the market," Poon said. "And the edge case for inference is literally at the edge — space offers latency advantages for global deployment that terrestrial data centres cannot match."

Orbital is not alone in this vision. SpaceX itself has filed plans for up to one million orbital data centre satellites, while startups Starcloud (formerly Lumen Orbit) and Cowboy Space have submitted proposals for 88,000 and 20,000 satellite constellations respectively. Starcloud targets 200 kilowatts per satellite, and SpaceX has outlined 150-kilowatt-class orbital data centres. Major tech companies including Google and Amazon's Blue Origin are also exploring space-based compute infrastructure.

The Economics of Orbital Computing

Poon acknowledged that the per-watt cost of space-based computing is currently higher than terrestrial alternatives, but argued that the gap is narrowing rapidly. As launch costs continue to fall — driven by SpaceX's reusable rocket technology — and as satellite manufacturing scales up, the economics become increasingly viable. Orbital is designing the core satellite platform in-house from Los Angeles and is exploring manufacturing partnerships and broader collaboration opportunities.

Performance gains across successive generations are expected to compound. Even small design changes in each generation could have outsized effects when scaled across a 100,000-satellite constellation. Orbital could see improvements similar to those projected by other orbital data centre developers as satellite designs mature.

Regulatory and Environmental Concerns

The proposal has already drawn scrutiny from astronomers, space debris researchers, and competing satellite operators. An additional 100,000 objects in low Earth orbit — even if carefully managed — would dramatically increase collision risk and further complicate an already congested orbital environment. The FCC will need to weigh these concerns alongside the potential benefits of offloading AI computing from Earth's strained power grids.

Orbital's filing follows a pattern set by SpaceX, whose January 2026 application for one million satellites was accepted by the FCC in February and opened for public comment. The regulatory landscape for mega-constellations remains uncertain, with agencies across multiple countries developing frameworks for space-based computing infrastructure.

What This Means for India

India's rapidly growing digital economy and AI ambitions make it a key market for space-based computing. Indian enterprises and government agencies are among the largest consumers of cloud and AI services, and the country has seen massive investments in terrestrial data centre capacity from Amazon Web Services, Google, and Blackstone-backed AirTrunk. Space-based AI inference could complement these terrestrial investments, particularly for applications requiring low-latency processing across India's vast geography, including agriculture monitoring, disaster response, and telemedicine.

The Indian Space Research Organisation (ISRO) has not publicly commented on Orbital's plans, but India's growing private space sector — including companies like Skyroot Aerospace and Agnikul Cosmos — could play a role in the global orbital data centre supply chain. For context on the broader AI infrastructure investment wave, see our coverage of AI agentic platform funding and SpaceX's AI infrastructure expansion.

Frequently Asked Questions

When will Orbital's satellites launch?

Orbital has not announced a launch timeline. The FCC filing is an early regulatory step, and the company is still finalising satellite design. Poon said Orbital expects to move toward manufacturing partnerships once the regulatory path is clearer.

How does this compare to SpaceX's orbital data centre plans?

SpaceX filed for up to one million satellites in January 2026, targeting 150-kilowatt-class orbital data centres. Orbital's proposal is for 100,000 satellites at 100 kilowatts each. Both filings reflect the growing belief that space-based computing will complement — not replace — terrestrial data centres.

Will these satellites contribute to space debris?

This is a significant concern. Orbital's 100,000 satellites would dramatically increase the number of objects in low Earth orbit. The company has stated it is designing for controlled deorbit at end of life, but astronomers and debris researchers remain concerned about collision risk and light pollution.

Can India benefit from space-based AI computing?

Yes. India's geographic diversity and growing AI sector make orbital inference particularly attractive for applications like precision agriculture, telemedicine, and disaster management. India's growing private space sector could also participate in the orbital data centre supply chain.

Sources

Sources: SpaceNews, The Economic Times, Daily Galaxy, FCC filing SAT-LOA-20240624-00251