As energy production remains a key bottleneck in the buildout of data centers for AI workloads on Earth, the idea of launching solar-powered data centers orbiting the planet has started to take shape.
However, BNP Paribas contends current launch costs make any sizable project prohibitive. BNP estimates current launch costs range from $1,500 to $3,600 per kilogram. They believe costs need to fall below $300 per kilogram to make any sizable data center project economically viable.
At current launch costs, a 1-GW space-based data center would require more than $100B. In comparison, a 1-GW terrestrial data center costs $35B to $50B to construct.
“We do not view orbital data centers as a viable near- to medium-term solution to replace terrestrial data centers, due to the significant launch costs, as well as higher hardware costs associated with space-grade systems, including specialized electrical infrastructure and thermal management,” said BNP Paribas analyst Nick Jones. “We estimate launch costs for a 1GW data center would be approximately $30-$75B, in addition to our estimated $50B of costs to construct the satellite fitted with data center components and solar panels.”
If, and when, costs for orbital data centers become viable, BNP Paribas expects companies such as Google (GOOG)(GOOGL), Amazon (AMZN), and Meta (META) to be among the first companies involved in early-stage alpha testing.
“Our analysis suggests that, long-term, the CapEx and OpEx dynamics could bring the economics of orbital data centers closer to parity with terrestrial facilities, provided that innovation continues in ground-link, cooling, and solar-power technologies,” Jones added. “In our view, the primary advantage of locating data centers in space would be the comparatively lower barriers to expanding capacity, since they could sidestep many of the regulatory, zoning, and land-acquisition constraints that affect ground-based sites.”
Several companies have already started exploring the idea. For example, in November 2025, Nvidia-backed (NVDA) Starcloud launched the first Nvidia H100 GPU into space aboard a SpaceX (SPACE) Falcon 9 rocket. The Starcloud-1 satellite weighed about 60 kilograms and was the size of a small refrigerator. Starcloud’s ultimate vision is for a 5-GW orbital data center featuring massive solar and cooling panels. It would measure about 4 kilometers in width and length.