Artificial Intelligence Is Taking Flight and Pulling Space Infrastructure Stocks Along for the Ride
The AI boom is starting to run into real-world limits, and that’s pushing the next wave of thinking upward. Power shortages and grid constraints have become the main bottlenecks slowing AI expansion, forcing tech giants to look beyond crowded land and overstretched infrastructure. One idea gaining traction is moving data centers into orbit, where solar energy is constant, and cooling doesn’t have to fight Earth’s atmosphere.
Building AI beyond Earth: According to the WSJ, SpaceX and Blue Origin are now working on orbital AI computing infrastructure, with SpaceX even referencing the concept in a share sale that could value the company near $800B. For investors, the appeal is straightforward. Matthew Tuttle of Tuttle Capital says AI’s unusually high revenue per kilowatt makes constant solar power in space economically attractive, which is why the concept of “compute in orbit” is now being taken seriously rather than brushed off as science fiction.
- Blue Origin has kept a dedicated team focused on orbital data center technology for over a year, while SpaceX plans to roll out upgraded Starlink satellites with onboard AI computing payloads.
- Travis Beals, a Google executive working with Planet Labs, estimates it would take roughly 10K satellites to match the compute power of a single gigawatt data center using 100-kilowatt satellites.
Orbit First, Scale Later
Tuttle breaks the opportunity into three phases. The first focuses on existing satellites for Earth observation, maritime tracking, and communications, where onboard AI helps reduce data transfer needs and speed up decisions. The second looks ahead to purpose-built AI satellites that could be rented for compute — though radiation, launch schedules, and networking still limit scale. Microchip TechnologyMCHP stands out as a direct beneficiary thanks to its space-grade, radiation-tolerant chips that standard data center GPUs can’t handle.
- Tuttle also highlights space infrastructure beneficiaries, including RedwireRDW, Rocket LabRKLB, Northrop GrummanNOC, and Lockheed MartinLMT.
- On the ground, EatonETN, HubbellHUBB, Quanta ServicesPWR, and VertivVRT stand to gain from near-term grid buildouts.
The slow build: Planet Labs CEO Will Marshall says the idea of moving resource-heavy infrastructure off Earth has existed for years, but only becomes viable as launch and satellite costs fall — a point he believes is now getting close. Google exec Beals is more cautious, noting, “We have a long, hard road in terms of all the optimization… in a cost-effective way.” The investing edge isn’t betting on full-scale orbital data centers materializing tomorrow — it’s identifying where capital flows first as the buildout begins.