Key Takeaways
- Cowboy Space has raised $275 million to build rockets for space data centers.
- The company plans to use its own rocket program, with the first launch expected by the end of 2028.
- There is a shortage of rockets suitable for launching data centers into orbit and it may take several years before such rockets become commercially available.
- Cowboy Space’s CEO, Baiju Bhatt, believes that having its own rocket program will allow the company to compete with established players like SpaceX and Blue Origin in this market.
The seemingly insatiable demand for AI compute has led data center entrepreneurs to look towards space. However, there is a significant problem: not enough rockets are available to put data centers into orbit around Earth, making the process expensive and time-consuming.
Most players are relying on SpaceX’s Starship or Blue Origin’s New Glenn rocket for this purpose. But these vehicles may be years away from becoming commercially available due to internal business commitments at both companies. As a result, there are few options for launching data centers into space in the near future.
Cowboy Space CEO Baiju Bhatt decided to develop its own rocket program as a solution. The company has closed a $275 million Series B round and expects to begin launching rockets before the end of 2028. This move puts Cowboy Space into direct competition with major players in the space industry.
One advantage of having an in-house rocket program is simplifying the design process for data center satellites, which can be built directly into the second stage of the rocket. The company aims to build its own rocket engine as well, making this a unique and potentially competitive approach in the market.
“There’s a lot of new rockets that are coming online, but as we look three, four years out, it’s still very, very scarce, and I think you’re going to see a lot of first-party rocket providers actually specializing into their own payloads,” Bhatt said.
Despite the challenges, Cowboy Space believes there is room for multiple players in this market due to the increasing demand for AI compute and limited options on Earth. The company’s focus on space data centers also provides a distinct advantage over traditional terrestrial solutions.
Originally published at techcrunch.com. Curated by AI Maestro.
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