Data Centers? In Space?! Startup Raises $250 Million
Summary
Starcloud, a startup from Washington, has raised an additional $250 million to develop data centers in space that handle AI computing tasks. The company aims to build a large network of satellites that provide powerful computing capacity above Earth, potentially easing the energy demands of ground-based data centers.Key Facts
- Starcloud was founded in 2024 and has now raised a total of $450 million, valuing the company at $2.3 billion.
- Investors include Nvidia, Cisco Investments, Benchmark, and EQT.
- The company plans to build a fleet of 88,000 satellites capable of delivering 20 gigawatts of computing power in orbit.
- Starcloud flew an Nvidia H100 GPU, a specialized AI chip, into orbit in November 2025 and ran AI tasks there.
- Nvidia and Starcloud are working together on a new Space-1 Vera Rubin Module designed to handle space conditions and provide even more computing power.
- Data centers consume a growing share of electricity on Earth, with projections showing demand could double or triple by 2028 in the U.S.
- Space-based data centers could help reduce energy use and cooling challenges that Earth data centers currently face.
- Starcloud is building a large manufacturing facility in Woodinville, Washington, to expand satellite production.
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