Can Starcloud and Crusoe Launch Data Centres in Space?

As data centre operators grapple with increasing energy demands while AI workloads scale, some companies are being pushed to explore alternative solutions that sound impossible.

Crusoe, an AI infrastructure provider based in Denver, Colorado, has now announced a partnership with Starcloud to deploy what the companies describe as the first public cloud operating in space, with graphics processing unit (GPU) capacity expected in orbit by early 2027.

The agreement will see Crusoe Cloud run on a Starcloud satellite scheduled to launch in late 2026. 

Why Crusoe and Starcloud are looking to space for data centre development

The collaboration is an attempt to sidestep the energy and physical constraints strangling Earth-based data centres by tapping into solar power available beyond the atmosphere.

Crusoe has built its business model on locating data centre operations near stranded or renewable energy sources. 

Stranded energy refers to power that is generated but cannot be efficiently transported to users, such as natural gas flared at remote oil and gas sites. 

The company’s move into orbit extends that strategy, though the leap from repurposing flared gas in North Dakota to deploying satellites is substantial.

“At Crusoe, we believe that space will ultimately matter to the future of computing because it enables new solutions to a key scaling constraint for AI infrastructure, which is sourcing abundant, consistent and clean energy,” says Cully Cavness, Co-founder, President and Chief Operating Officer of Crusoe. 

“Since our founding, Crusoe has specialised on co-locating compute infrastructure with novel energy sources. By partnering with Starcloud, we will extend our energy-first approach from Earth to the next frontier: outer space.”

How Starcloud satellite will host Crusoe Cloud’s module

Starcloud’s orbital data centre concept is a satellite-based computing platform that integrates solar power generation with processors and onboard cooling systems. 

The platform eliminates the need for physical land, conventional cooling or grid connections, according to the company, addressing some of the constraints that have limited data centre expansion in recent years.

The satellite launching in 2026 will host a Crusoe Cloud module, enabling customers to deploy AI workloads from space. 

Starcloud states the design is capable of handling inference and training workloads. Inference refers to running data through a trained AI model to make predictions, while training involves teaching a model to recognise patterns in data – both of which require substantial computing power and have driven much of the recent surge in GPU demand.

“Having Crusoe as the foundational cloud provider on our platform is a perfect alignment of vision and execution,” says Philip Johnston, CEO of Starcloud. 

“Crusoe’s expertise in building rugged, efficient and scalable computing solutions makes them the ideal partner to pioneer this new era. 

“Together, we are building not just a data centre in space, but a new category of cloud computing that will unlock extraordinary possibilities for research, discovery and innovation.”

On Earth, Crusoe uses flared natural gas and renewable energy sources to power data centres, reducing waste emissions from energy production. 

The company plans to apply similar energy optimisation principles to operations in space, though the technical challenges of maintaining computing infrastructure in orbit are considerable and largely untested at commercial scale.

Crusoe and Starcloud’s plan for a distributed space network

The companies have indicated plans to develop larger orbital data centres over time, scaling capacity as demand for AI computing increases. 

This could see multiple satellites hosting compute infrastructure, creating what would be a distributed space-based cloud network, though the timeline and capital requirements for such expansion remain unclear.

The partnership’s long-term vision reflects a broader industry trend toward distributed and off-grid compute models.

As energy costs, land constraints and environmental pressures intensify, solutions that combine efficiency, sustainability and scalability are becoming increasingly critical.

For Crusoe, launching its cloud into orbit marks the latest evolution of its mission to reimagine how compute resources are powered and deployed.

By integrating its AI infrastructure with Starcloud’s orbital technology, the company is moving its data centre model from remote regions of Earth to the furthest possible edge – space itself.

If successful, the project could redefine how data centres are built, powered, and accessed, offering a sustainable new frontier for the next generation of AI and cloud workloads.