There Aren’t Enough Rockets for Space Data Centers — Cowboy Space Raised $275M to Build Them
The insatiable demand for AI compute has led data center entrepreneurs to explore the cosmos. The primary obstacle is that there aren’t enough rockets available to deploy data centers in orbit around Earth, and those that are available are prohibitively expensive.
Most of the players are betting on SpaceX’s Starship — expected to make its 12th test flight soon — or Blue Origin’s New Glenn rocket. However, these vehicles may take years to become commercially viable due to existing commitments within these companies’ portfolios. Other space data center schemes are targeting tasks like edge processing for sensors orbiting Earth, such as those used by Starcloud.
Cowboy Space Corporation, founded in 2024 under the name Aetherflux, has pivoted from collecting solar energy to deploying its own rocket program to address this gap. CEO and founder Baiju Bhatt announced a $275 million Series B round at a post-money valuation of $2 billion, led by Index Ventures alongside previous investors including Breakthrough Energy Ventures and Andreessen Horowitz.
Currently, Cowboy Space is focusing on developing its own rockets to build data centers in orbit. This approach contrasts with the typical design where the second stage of a rocket carries payloads into space. Instead, Cowboy Space plans to integrate their data centers directly into this second stage, leveraging lessons from historical satellite launches.
Bhatt explained that while multiple launch providers were initially considered for satellite deployment, none could offer sufficient capacity to sustain an orbital data center business in the near future. The company’s unique design—building its own rocket specifically for launching these data centers—aims to streamline operations and reduce costs compared to traditional approaches.
The new vision also emphasizes Cowboy Space’s niche focus on this specialized market, allowing it to compete with established giants like SpaceX and Blue Origin without the need to diversify into broader space applications. Bhatt believes that as AI demands continue to grow, so too will opportunities for innovative solutions in orbit.
- Cowboy Space has hired key industry veterans, including former Blue Origin propulsion engineer Warren Lamont and former SpaceX launch director Tyler Grinne, to support its rocket development efforts.
- The company plans to build its own rocket engine, which is one of the most complex and expensive components in any launch vehicle. This self-sufficiency aims to reduce dependency on external suppliers and lower costs.
- Cowboy Space has initiated work on facilities for testing, manufacturing, and launching their rockets, though significant development remains required before these capabilities can be operationalized.
Key Takeaways
- Cowboy Space is developing its own rocket program to build data centers in orbit, leveraging lessons from historical satellite launches.
- The company has hired key industry veterans and plans to build its own rocket engine to reduce dependency on external suppliers.
- As AI demands continue to grow, Cowboy Space sees opportunities for innovative solutions in space, complementing existing terrestrial data center options.
Originally published at techcrunch.com. Curated by AI Maestro.
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