The ambition to move Earth’s most power-hungry infrastructure into orbit is intensifying, with the China Aerospace Science and Technology Corporation (CASC) announcing a bold plan to deploy gigawatt-class AI space data centers within the next five years. This move signals a new frontier in the global competition to integrate artificial intelligence development with space-based infrastructure.
China’s Ambitious Orbital AI Infrastructure
According to Chinese state media, CASC’s initiative is a core component of its upcoming five-year development plan. The strategy aims to establish a “gigawatt-class space digital-intelligence infrastructure” that tightly couples computing power, storage, and data transmission capabilities in orbit, creating an integrated system of cloud, edge, and terminal services.
This announcement follows a CASC policy document proposing the deployment of large solar-powered orbital hubs specifically to provide energy for AI processing. The effort aligns with China’s upcoming 15th Five Year Plan, which positions AI development as a central national priority.
Early groundwork is already underway. In May 2025, Zhejiang Lab launched 12 low-Earth orbit (LEO) satellites, forming the initial phase of its “Three-Body Computing Constellation.” The lab aims to expand this to a 2,800-satellite network capable of delivering a combined computing capacity of 1,000 peta operations per second.
The Global Space Race For Computing Power
China is not alone in this pursuit. In 2023, European firm Thales Alenia Space initiated its ASCEND project to study the feasibility and environmental impact of orbital data centers. More recently, SpaceX CEO Elon Musk stated at the World Economic Forum that his company intends to deploy solar-powered AI data center satellites within the next two to three years.
Other US tech leaders are also eyeing space. Amazon founder Jeff Bezos has endorsed the concept, though he estimates that gigawatt-scale orbital data centers are still a decade or two away. Meanwhile, US startup Starcloud launched a test satellite last November equipped with an Nvidia H100 GPU to experiment with in-space data processing, with a long-term goal of deploying a 5GW space data center.
UAE’s Madari Space Enters The Orbit
The MENA region is also marking its presence in this emerging sector. UAE-based startup Madari Space is collaborating with Thales Alenia Space to test space data center technology. The partnership will see the launch of a nano-satellite mission this year, positioning the UAE as an early participant in the development of next-generation orbital computing infrastructure.
Promise And Peril Of Orbital Data Centers
The primary drivers for moving data centers to space are compelling. They include access to continuous and abundant solar power, the vacuum of space providing natural and efficient cooling, and the potential to significantly reduce the growing environmental footprint of data processing on Earth.
However, the endeavor faces monumental challenges. Experts highlight the risks of exposure to cosmic radiation, solar flares, and the ever-present threat of space debris. Furthermore, the immense cost and complexity of launching and maintaining such sophisticated hardware in orbit remain significant hurdles to overcome.
About Madari Space
Madari Space is a pioneering UAE-based startup at the forefront of the space technology revolution. The company is developing in-space data processing and storage solutions, aiming to build sustainable and scalable orbital infrastructure to meet the world’s increasing data demands.
Source: MEA Tech Watch
