The growing demand for AI computing power is prompting data center entrepreneurs to look beyond Earth, but a significant challenge remains: the current shortage of rockets capable of deploying data centers into orbit.
Many industry leaders are pinning their hopes on SpaceX's Starship, which is set for its twelfth test flight soon. However, it may take years before it becomes commercially available due to SpaceX's focus on its satellite operations. Similarly, Blue Origin's New Glenn rocket has faced setbacks, including a failed satellite launch during its third attempt.
As a result, various space data center initiatives are eyeing the mid-2030s for deployment, like Google's Suncatcher, while others, such as Starcloud, are starting with edge processing for space sensors.
In a bold move, Baiju Bhatt, CEO and founder of Cowboy Space Corporation, announced plans to establish an in-house rocket program, with the first launch anticipated by the end of 2028. The company recently completed a $275 million Series B funding round, led by Index Ventures, valuing it at $2 billion. Other investors include Breakthrough Energy Ventures, Construct Capital, IVP, and SAIC.
Initially founded as Aetherflux in 2024 to harness solar energy in space and transmit it back to Earth, the company pivoted towards orbital data centers, leading to the new name and direction. Bhatt noted that discussions with various launch providers revealed a lack of sufficient capacity for scaling an orbital data center business.
"There are numerous new rockets on the horizon, but looking ahead three to four years, availability remains scarce," Bhatt remarked. "I anticipate that many first-party rocket providers will focus on their payloads."
While developing its rockets may seem ambitious, Cowboy Space will be entering a competitive landscape dominated by established players like SpaceX and Blue Origin. Bhatt believes the market size is substantial enough to accommodate multiple successful entrants, especially as the demand for AI continues to grow.
What sets Cowboy Space apart is its unique approach to rocket design. Instead of a conventional booster stage followed by a payload delivery system, the company plans to integrate its data centers directly into the second stage of its rockets. This design harkens back to the early days of space exploration, reminiscent of the first US satellite, Explorer 1.
Each satellite is expected to weigh between 20,000 to 25,000 kilograms and generate one megawatt of power, supporting nearly 800 GPUs. This design will yield a rocket slightly more powerful than SpaceX's Falcon 9, but smaller than the upcoming Starship. Bhatt envisions a reusable booster in the future.
To bring this vision to life, Cowboy Space has recruited industry veterans, including former Blue Origin and SpaceX engineers. The company is also planning to develop its own rocket engine, a critical component of any launch vehicle, while addressing essential development needs such as testing and manufacturing facilities.
With a renewed focus and a fitting name, Cowboy Space aims to "power humanity from the high frontier," reflecting its commitment to innovation in space data centers.