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Ambitious companies are betting on data centres in orbit and on the Moon, claiming these extraterrestrial facilities will revolutionize digital security and reduce environmental impact.

As global demand for data soars, some companies are setting their sights on space. Stephen Eisele, president of Lonestar Data Holdings, envisions a future where data centres operate on the Moon. He argues that this move will offer unparalleled data protection. Recently, Lonestar successfully tested a compact data centre on the Moon, marking a significant step in its ambitious plan.

The mission, launched by SpaceX and carried out using Intuitive Machines’ Athena Lunar Lander, proved the feasibility of operating data centres in space. These miniature data centres store and process vital information for businesses, governments, and websites—offering a glimpse into what could be the future of digital security.

A New Era of Digital Storage

The growing demand for data, driven by artificial intelligence and global digital activity, has put pressure on traditional data centres. According to McKinsey, the global demand for data storage is expected to increase by 19% to 22% annually through 2030. As a result, the need for more data centres is becoming urgent.

However, building these centres on Earth is becoming increasingly challenging. Data centres require large spaces, significant electricity, and water for cooling. Communities near these centres are raising concerns over noise, heat, and the high energy consumption associated with their operations.

Lunar data centres, advocates argue, could solve many of these problems. Powered by solar energy, these facilities would not only be more environmentally friendly but would also avoid the negative effects of Earth-based construction. Some experts even suggest that space-based centres could enhance space operations by allowing quicker data transfers between spacecraft.

In 2023, the European Commission-backed Ascend project, led by Thales Alenia Space, highlighted the potential benefits of space data centres. The project proposes the creation of a network of 13 orbiting satellites that would provide 10 megawatts of processing power—equivalent to a medium-sized data centre on Earth.

Environmental and Technical Hurdles

While the idea of space-based data centres is gaining traction, there are still significant obstacles. Damien Dumestier, the lead architect of the Ascend project, emphasized that rocket launches must become much less polluting to make the solution sustainable. However, Dumestier remains optimistic, suggesting that by 2030, commercial space-based data centres could be ready for widespread use.

Scaling up the concept would require around 200 orbital facilities and 200 rocket launches, which could take years to achieve. Additionally, the technical challenges of operating in space are immense. Building and maintaining space-based data centres requires not just computers but also advanced energy, cooling, and protective systems. Cooling, in particular, is problematic because traditional methods don’t work well without gravity.

Space weather also presents risks to electronics, and space debris could physically damage these delicate systems. Repairs are another major concern, as remote fixes are limited, and serious breakdowns could require crewed missions, potentially delaying service for weeks or months.

Market Demand and Legal Framework

Despite the challenges, companies like Lonestar remain confident. “We wouldn’t build this if customers weren’t demanding it,” says Scott of Lonestar. The company plans to launch a lunar data centre in 2027, while competitors like Starcloud, based in Washington, are moving quickly with plans for a satellite-based facility, set to begin operations by 2026.

Stephen Eisele of Lonestar argues that space-based storage provides a level of security that Earth-based systems cannot match. “It’s like a vault in a bank—you don’t access it daily, but it provides solid protection,” he explains. The Moon’s distance from Earth makes it much harder for hackers to tamper with the data.

Although the 1.5-second delay for data to travel from the Moon may make it unsuitable for real-time applications, it’s ideal for long-term storage and backup solutions.

Navigating Legal Complexities

Lonestar’s technology also aligns with international data regulations. Under space law, hardware used for data storage in space is governed by the jurisdiction of the country that launched it. According to CEO Chris Stott, this arrangement makes their space-based data centres essentially “space embassies,” offering legal advantages for countries that require local storage of citizen data.

Lonestar already has committed clients, including the government of Florida and the Isle of Man, who see the potential benefits of space-based data storage.

As interest in space-based data centres grows, the debate over their feasibility and security will continue. If these projects succeed, they could not only change the way we store and protect data but also provide a new frontier in digital infrastructure.