Plans to build data centres beyond Earth are rapidly becoming a reality, with leading tech companies pushing for a moon-based solution. Stephen Eisele, the president of Lonestar Data Holdings, believes that space-based facilities will soon revolutionize data processing by offering a level of security and reliability that Earth-bound systems cannot match. In a groundbreaking test earlier this year, Lonestar sent a miniature data centre to the Moon, marking a significant milestone in their mission to build secure, solar-powered data centres in space.

The Surge in Demand for Data Centres:

The demand for data centres is skyrocketing, driven by the rapid growth of artificial intelligence and the ever-increasing volume of global data. According to McKinsey, the need for data storage and processing is expected to grow by 19% to 22% annually through 2030. As a result, tech companies are seeking innovative solutions to meet this demand, with space-based data centres emerging as a viable option.

Traditional data centres on Earth are struggling to keep up with the rising demand. Not only are suitable locations for these centres becoming scarce, but they also require vast amounts of energy and water. Moreover, many local communities oppose the construction of large data centres, citing concerns over environmental impact and noise.

By moving data processing to space, these issues could be alleviated. Space offers an endless supply of solar energy, eliminating the need for environmental impact assessments or local opposition. In addition, the possibility of connecting data centres via spacecraft could improve the speed and efficiency of space-to-space communications.

The European Commission’s Feasibility Study:

In response to growing interest in space-based data solutions, the European Commission funded a study conducted by Thales Alenia Space, which explored the feasibility of data centres in Earth orbit. The study, called the “Ascend” report, concluded that space-based data centres could transform Europe’s digital infrastructure while reducing environmental damage.

The report envisions a 200-meter by 80-meter satellite constellation that would provide 10 megawatts of computing power—equivalent to a mid-sized Earth-based data centre with approximately 5,000 servers. This ambitious project could be built using existing and emerging space technologies, offering a glimpse into a futuristic yet achievable construction process.

Overcoming Space Challenges:

While the concept of space-based data centres is appealing, experts warn of significant challenges. Damien Dumestier, project architect for the Ascend study, explained that emissions from rockets must be reduced by a factor of ten for space data centres to be truly sustainable. Achieving this would require the launch of 200 large space infrastructures and extensive development in space launch capabilities.

Furthermore, the high cost of launching materials into space remains a critical hurdle. Each kilogram of equipment launched costs thousands of dollars, making the process financially prohibitive without substantial investments.

Another major concern is the technical difficulty of maintaining and cooling data centres in space. Space lacks gravity, which complicates conventional cooling methods. Additionally, space weather, such as solar flares, can damage electronic hardware, and increasing space debris poses a growing threat to the physical safety of orbiting data centres.

Despite these challenges, companies like Lonestar are moving ahead with their plans to establish data centres in space. Lonestar aims to launch a lunar-orbiting data centre by 2027, and other companies, such as Starcloud based in Washington, are working on even faster timelines. Starcloud plans to launch a satellite data centre in the coming months and aims to begin full commercial operations by mid-2026.

Stephen Eisele, president of Lonestar, believes the advantages of space-based data centres outweigh the risks. He compares the setup to a secure bank vault—protected, remote, and only accessed when necessary. The Moon’s distance from Earth, while adding a 1.5-second data transmission delay, is well-suited for backup and archival storage tasks, which don’t require real-time communication.

Chris Stott, CEO of Lonestar, adds that space-based data centres can also help meet data sovereignty requirements. Under space law, a data centre located in space falls under the jurisdiction of the country that launched it, much like an embassy on foreign soil. This feature could appeal to governments seeking to comply with strict national data laws.

As the demand for data processing continues to rise, space-based solutions are gaining traction. Companies like Lonestar are working toward building the first lunar data centres, with a timeline set for the next few years. Although significant technical and financial challenges remain, the potential benefits of moving data storage and processing to space—such as enhanced security, limitless solar power, and global data sovereignty—are driving this visionary leap into the final frontier. With increasing interest from both the public and private sectors, space-based data centres may soon become a reality, offering a futuristic solution to our growing data needs.