# Development of orbital data center technology > Live situation record from CLSTR: https://clstr.news/situations/development-of-orbital-data-center-technology > Updated: 2026-08-27T11:18:42.000Z. Sources: 2. Developments: 2. The concept of orbital data centers has transitioned from entrepreneurial proposals to formal engineering feasibility studies. Initially, space entrepreneurs including Jeff Bezos, Elon Musk, and Eric Schmidt suggested moving data-center operations to low-Earth-orbit satellites to bypass terrestrial challenges such as rising costs, land and water demands, and political opposition. Proponents noted that orbital facilities could utilize high-intensity solar power and drive demand for heavy-lift rocket launches. Early industry activity included Starcloud Inc. sending an Nvidia processing unit into orbit and Axiom Space Inc. launching data-center nodes to establish a foundation for space-based cloud computing. Following these developments, the focus has expanded to include structured research. Thales Alenia Space is currently conducting the ASCEND feasibility study under the European Commission’s Horizon Europe program. This study investigates whether orbital computing can support cloud services while addressing digital sovereignty and environmental goals, specifically examining engineering hurdles like heat dissipation, power access, and system autonomy. ## Timeline ### 2026-08-27: Thales Alenia Space explores feasibility of orbital data centers Thales Alenia Space is conducting the ASCEND feasibility study to explore the potential of orbital data centers for cloud computing, digital sovereignty, and AI infrastructure. 2 sources. https://clstr.news/cluster/thales-alenia-space-explores-feasibility-of-orbital-data-centers ### 2026-08-04: Space entrepreneurs propose orbital data centers Entrepreneurs Jeff Bezos, Elon Musk and Eric Schmidt advocate building data centers on low‑Earth‑orbit satellites, citing cost, land and energy advantages, with early tests by Starcloud, Axiom Space, Blue Orig​ 2 sources. https://clstr.news/cluster/space-entrepreneurs-propose-orbital-data-centers --- Cite as: Development of orbital data center technology. CLSTR, https://clstr.news/situations/development-of-orbital-data-center-technology