China plans to launch space data centres over next five years

China Aerospace Science and Technology Corporation (CASC) is planning to deploy gigawatt-class AI space data centres within the next five years as part of a broader strategy to integrate artificial intelligence development with space-based infrastructure.

According to Reuters, citing Chinese state broadcaster CCTV, CASC intends to build “gigawatt-class space digital-intelligence infrastructure” under its upcoming five-year development plan. The initiative aims to integrate cloud, edge, and terminal capabilities while tightly coupling computing power, storage, and transmission bandwidth in orbit.

The announcement follows a policy document issued by CASC proposing the deployment of solar-powered orbital hubs to provide energy for AI processing. The concept aligns with China’s upcoming 15th Five Year Plan, where AI development is positioned as a central priority.

Zhejiang Lab has already taken early steps toward this vision. In May 2025, it launched 12 LEO satellites forming what it calls the “Three-Body Computing Constellation.” The lab plans to expand this into a 2,800-satellite network delivering a combined computing capacity of 1,000 peta operations per second.

The idea of space-based data centres has gained momentum globally. In 2023, Thales Alenia Space launched the ASCEND project to examine the feasibility and environmental impact of orbital data processing facilities. Meanwhile, SpaceX CEO Elon Musk recently stated at the World Economic Forum that SpaceX intends to deploy solar-powered AI data centre satellites within two to three years.

Amazon founder Jeff Bezos has also endorsed the concept but estimates that gigawatt-scale space data centres remain 10 to 20 years away.

Last November, US startup Starcloud launched a test satellite equipped with an Nvidia H100 GPU to experiment with in-space data processing. The company ultimately aims to deploy a 5GW space data centre powered by a 4 sq km solar array. UAE-based startup Madari Space is also working with Thales Alenia Space to test space data centre technology through a nano-satellite mission this year.

The primary appeal of placing data centres in space lies in access to continuous solar power, natural cooling, and the potential to reduce environmental impact on Earth. However, experts warn of significant challenges, including exposure to radiation, solar flares, space debris, and the complexity and cost of maintenance in orbit.