Data Centers in Orbit
Daniel@danielgoulding
−12.7%
since Oct 10
The idea
I believe SpaceX's push to put AI data centers in orbit creates real demand for everyone in that supply chain, so this take owns the builders and launchers, the radiation-hardened chip makers, and space-grade hardware suppliers alongside ground-based AI compute to hedge against delays. It spreads bets across many names rather than leaning on one ticker, keeps around a tenth in cash, and is meant to be held for years as the orbital timeline plays out. If the 2027 to 2028 launch plans stall for good, that's when I'd rethink it.
What it owns
- These companies build, power and launch the satellites that orbital data centers require to operate. · Rocket LabLaunches rockets and makes satellite parts including solar cells, both needed in volume for an orbital data center buildout., Planet LabsBuilds and operates a large satellite fleet and is moving toward putting computing in orbit as a direct supplier to orbital data centers., RedwireBuilds solar arrays that power computers in orbit and recently won contracts for commercial space station modules., Firefly AerospaceOperates smaller launch vehicles adding to total capacity needed to put thousands of computing satellites into orbit.23%
- Computing in orbital data centers runs on processors and radiation-hardened chips from these manufacturers. · NVIDIAProcessors power most AI data centers on the ground and are the likely computing core of systems in orbit., Advanced Micro DevicesMakes AI processors and space-grade programmable chips used on many satellites and orbital systems., Microchip TechnologyMakes radiation-hardened chips and controllers built to withstand space radiation and run satellites reliably.19%
- Data centers on Earth earn money today while orbital computing develops, providing near-term returns for the take. · Meta PlatformsOne of the largest spenders on AI data centers, so it earns from ground-based computing if the orbital timeline slips., Applied DigitalBuilds and leases data centers to AI customers, expanding campuses as tenants move into new facilities.18%
- Early bets on satellite service straight to phones and next-generation batteries represent infrastructure buildout in orbit. · AST SpaceMobileBuilds some of the largest commercial satellites flying and operates infrastructure in orbit as a rival to existing phone service to mobile devices., EnovixDevelops silicon batteries that pack more power into less weight, needed if orbital data centers run on battery power.17%
- Anything launched into orbit needs parts built to survive radiation and launch, supplied by these firms. · Teledyne TechnologiesMakes sensors, imaging and electronics that fly on satellites, providing steady profitable revenue that balances riskier space bets., Karman HoldingsMakes parts that go into rockets and spacecraft, earning more as launch and space activity increases., Mercury SystemsMakes rugged computer boards and processors built to survive harsh environments including space.12%
- Cash11%