Orbital Startup Faces Economic Challenges in Launching Space Datacenters

Orbital Startup Faces Economic Challenges in Launching Space Datacenters

First seen 15 Apr 2026, 15:44 UTC Theregister 21.9

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Orbital, a startup aiming to build a 10,000-satellite neocloud in space, has acknowledged that current launch economics are not viable. CEO Euwyn Poon stated that the cost to launch one kilogram into space is approximately $7,000, significantly higher than the target of $10 per kilogram set by Elon Musk. Poon expressed confidence that the necessary advancements in launch capacity and cost reduction will occur, but noted that achieving economic viability is a substantial challenge. The company is developing a satellite designed to house 100kW of equipment, which poses unique cooling challenges in space. Orbital plans to conduct a proof-of-concept flight using Nvidia's Space-1 Vera Rubin module to test its radiation hardening technology. The startup is also aware that servicing satellites in orbit is impractical, emphasizing the need for reliability and pre-launch testing of components.

Key Points: • Orbital's plan for a 10,000-satellite neocloud is currently economically unfeasible. • The cost to launch one kilogram into space is around $7,000, far above the target of $10. • Orbital is developing cooling solutions for satellites that will house significant computing power.

Timeline

2026-04-15
Orbital announces challenges in launch economics and plans for satellite development.