Billionaire entrepreneurs Elon Musk, the CEO of SpaceX, and Jeff Bezos, founder of Blue Origin, have signaled they’re working on developing data centers to be stationed in space, which would allow the energy-intensive data centers to be cooled more cost efficiently than on Earth, given the strain they impose on the electric grid.<\/p>\n
An upcoming space launch will serve as another key test as another firm, LoneStar Data Holdings, pursues its goal of having AI\u00a0data centers in space<\/a> within a decade.<\/p>\n LoneStar Data Holdings is pursuing its goal of having AI\u00a0data centers in space within a decade. (Intuitive Machines)<\/p>\n Sidus Space is set to launch its LizzieSat-4 and -5 into orbit later this year on a SpaceX rocket with a payload that will include a data center from LoneStar Data Holdings that will go into orbit. LoneStar’s data center will serve customers, including U.S.-based AI data labs.<\/p>\n LoneStar recently sent a data center to the moon on a test mission and successfully transmitted video, documents and\u00a0AI analytics<\/a> back to Earth during its flight. The company plans to have data centers orbiting the moon by 2028 and located on the lunar surface by the early 2030s.<\/p>\n LoneStar recently sent a data center to the moon on a test mission and successfully transmitted video, documents and\u00a0AI analytics back to Earth. (Soumyabrata Roy\/NurPhoto via Getty Images)<\/p>\n LoneStar founder Chris Stott told FOX Business Network’s Madison Alworth that space is “unique” in the cooling and energy properties at play for data centers, as well as other factors.<\/p>\n NASA RETURNS HUMANS TO DEEP SPACE AFTER OVER 50 YEARS WITH FEBRUARY ARTEMIS II MOON MISSION<\/strong><\/a><\/p>\n “But more importantly, down here on the ground where we create the data, is also where we have the storms, the hurricanes, the hacking, the\u00a0cyber ransoms<\/a>, all of the problems with networks. And this allows us to do a backup off-planet but in-country,” he said.<\/p>\n He added that the emerging space data storage industry initially faced a perception challenge amid questions about whether it was technically feasible or necessary, but the data center boom over the past year has helped it move from “science fiction to science fact.”<\/p>\n The Earth rises as viewed from the surface of the moon. (Getty Images\/NASA)<\/p>\n DATA CENTER BOOM POWERING AI REVOLUTION MAY DRAIN US GRIDS \u2013 AND WALLETS<\/strong><\/a><\/p>\n Nicole Stott, a retired astronaut and member of LoneStar’s advisory board, said that putting data centers in space would mitigate issues posed by data centers on Earth, such as the strain on the\u00a0electric grid<\/a>.<\/p>\n “There’s so much about this near-Earth environment that provides us with ways to lift some of the most harmful industry off the planet and put it into the benign environment of space in a thoughtful and, I think, ultimately sustainable way as well,” she explained.<\/p>\n![\"A](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/01\/lonestar-data-holdings-moon-tech.jpg\")
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