China's orbital data center lead threatens European digital sovereignty

A policy note from the European Institute of Space Policy (ESPI) warns that China's rapid advancement in orbital data centers threatens to leave Europe behind. These centers are becoming critical strategic assets for processing the massive volumes of data generated by artificial intelligence and satellite systems.

China has designated space-based computing as a national strategic priority. The China Aerospace Science and Technology Corporation (CASC), in collaboration with the Beijing municipal government and the Zhongguancun Science Park, has formalized orbital data center strategies. This state-supported approach includes top-down policy drafting and alignment between public and private industries.

While Europe is attempting to bolster its digital sovereignty through initiatives like the EU-funded ASCEND research project and the European Space Agency's work with Open Cosmos on the Φ-sat-2 satellite, current efforts remain limited in scale. The widening technological gap poses a risk that Europe may eventually have to rely on third-party actors to process its own space data, potentially losing direct access to vital orbital information.