Starcloud, a startup building data centers in space has said that it has raised an additional $250 million as it races to build orbital data centres, but the company is facing another major challenge, which is securing enough rockets to put its satellites into space.
The funding extension, announced on Friday, brings the space-computing startup’s total funding from its March Series A to $420 million and values the company at $2.3 billion.
The latest investment will help Starcloud expand its manufacturing capacity and develop Starcloud-3, its largest orbital data-centre spacecraft yet, which is planned to launch aboard SpaceX’s Starship rocket.
But securing launch capacity is becoming a growing concern for the company as demand for rocket launches increases and SpaceX prepares to phase out its Falcon 9 programme by 2028.
“We can see what’s coming — we’re going to need to book an enormous amount of launch,” Starcloud CEO Philip Johnston said.
“As soon as we can, we want to get under contract with things like Starship,” he added, noting that securing launch capacity has become one of the company’s biggest costs.
The company has already sought approval from the US Federal Communications Commission (FCC) to operate as many as 88,000 spacecraft, underscoring the scale of its planned orbital computing network.
Starcloud currently plans to launch two of its next-generation Starcloud-2 satellites in 2027 through rideshare missions.
See also: ChatGPT Can Now Read and Send Apple Messages From Mac
The satellites, which are designed to deliver 8 kilowatts of computing power, will perform AI inference tasks for customers including US government agencies.
The company is also considering purchasing a dedicated Falcon 9 launch and working with other rocket providers to support future missions.
The launch crunch is emerging as a major challenge for companies seeking to build data centres in space. SpaceX is preparing to transition from its widely used Falcon 9 rocket to the much larger Starship, which has yet to demonstrate regular operational service.
Other potential launch providers, including Blue Origin’s New Glenn and United Launch Alliance’s Vulcan, are also not yet flying frequently enough to offer a dependable alternative.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
