“Space-based data centres could fundamentally transform how we process data, manage energy, and maintain digital sovereignty. Europe has world-class space technology and strong institutions. The question is whether we’ll use them to lead this revolution or watch others define the future of computing.”
— Jermaine Gutierrez, ESPI Research Fellow and lead author of the report.
The European Space Policy Institute’s (ESPI) latest report has identified Space-Based Data Centres (SBDCs) as a significant and rapidly emerging opportunity for Europe’s digital and space industries.
What was once considered science fiction is now attracting serious investment from global tech giants, with executives from Amazon (Jeff Bezos), Google (Sundar Pichai), xAI (Elon Musk), and Alibaba signalling that the next frontier of cloud computing may be in orbit.
The shift is driven by explosive demand for AI computing power, mounting pressure on Earth’s energy grids, and the exponential growth of satellite data. While technical challenges persist, ESPI’s new report, “Data centres in space: orbital backbone of the second digital era?“, reveals that the race to establish orbital autonomy will be lost to foreign actors if no decisive action is taken.
Why Space? Why Now?
The drivers are compelling: AI training and data processing are consuming unprecedented amounts of energy on Earth, straining power grids and raising sustainability concerns. The global data centre market is expected to reach €535 billion in 2030. At the same time, the number of satellites in orbit is exploding, generating vast amounts of data that could be processed more efficiently in space rather than transmitting it to Earth.
Space offers unique advantages: abundant solar energy, the ability to process satellite data at the source, and protection from Earth’s natural and man-made threats. For Europe, leadership in this sector could strengthen digital autonomy and create a new competitive industry.
Europe’s path forward
ESPI recommends a strategic, phased approach:
- Leverage existing programmes like ESA’s GSTP and ARTES as a public-private testbed for enabling technologies,
- While proposing an ambitious European Space-Based Data Centre initiative under the Horizon Europe Moonshot Projects (2028-2034) with a clear roadmap towards commercial deployment.
Despite challenges including launch costs, thermal management in orbit, and early-stage in-orbit assembly technologies, these are precisely the types of problems European aerospace and technology industries excel at solving.
“Disruptive technologies like space-based data centres don’t come along often. When they do, early movers gain decisive advantages. Europe has everything needed to lead this transformation: advanced space capabilities, innovative companies, and strong institutional frameworks. What we need now is coordinated ambition and the political will to act.”
— H. Ludwig Moeller, ESPI Director
The message from ESPI is clear: the infrastructure that will power humanity’s digital future is being designed today. Europe must decide whether it will shape that future or follow it.
As a complement to this study, we are pleased to offer access to the full Compendium of the report upon request. To receive your copy, simply complete the form below:
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