Blue Origin Developing Orbital Data Centre Technology, Report Says
Jeff Bezos’ aerospace company Blue Origin has been quietly developing technology to support artificial intelligence (AI) data centres in space for more than a year, according to a report by The Wall Street Journal published on Wednesday.
The move signals a new frontier in the competition between Blue Origin and Elon Musk’s SpaceX, as both companies race to expand their reach beyond launch services into the emerging space-based computing sector.
SpaceX Eyes AI Payloads for Starlink
The report said SpaceX plans to use upgraded versions of its Starlink satellites to host AI computing payloads. The company has reportedly pitched the concept to investors as part of a share sale that could value it at up to $800 billion. Musk, however, dismissed recent reports about that valuation as inaccurate.
Reuters separately reported that SpaceX is targeting a $25 billion initial public offering in 2026, a move that could lift its overall valuation above $1 trillion. Neither Blue Origin nor SpaceX responded to Reuters’ requests for comment, and the Journal’s claims could not be independently verified.
Rising Interest in Space-Based Data Centres
The idea of orbital data centres has drawn increasing attention from technology and aerospace firms. As global demand for computing power surges, terrestrial data centres have placed growing strain on energy grids and water resources used for cooling.
By contrast, data centres in orbit could tap into constant solar power, operate without weather disruptions and dramatically reduce cooling needs. Advocates say these advantages could make space-based facilities not only viable but economically competitive in the coming decades.
Bezos Predicts Space Will Host Future Supercomputers
Amazon founder Jeff Bezos has been a vocal proponent of developing large-scale computing infrastructure beyond Earth. In October, he said gigawatt-scale data centres could be built in orbit within 10 to 20 years, eventually surpassing the performance and cost efficiency of Earth-based systems.
“We will be able to beat the cost of terrestrial data centres in space in the next couple of decades,” Bezos said at the time. “These giant training clusters will be better built in space, because we have solar power there, 24/7. There are no clouds and no weather.”
The race to realise that vision now appears to be accelerating, as the world’s leading space companies look to pair AI development with orbital technology.
with inputs from Reuters

