Cowboy Space Raises $275 Million to Build Orbital Data Centers and Its Own AI Rocket Network

The rapid rise of artificial intelligence is creating an unprecedented demand for computing power, pushing technology companies to search for entirely new ways to expand global data infrastructure. One emerging idea attracting attention is the concept of orbital data centers — powerful computing systems placed directly in space to process AI workloads beyond Earth’s atmosphere.

A newly rebranded aerospace startup, Cowboy Space Corporation, is now making one of the boldest bets in this field. The company has announced a massive $275 million Series B funding round at a valuation of approximately $2 billion, signaling growing investor confidence in the future of space-based AI infrastructure.

The company’s founder and CEO, Baiju Bhatt, who previously co-founded a major online stock trading platform, originally launched the startup in 2024 with a vision focused on collecting solar energy in space and transmitting it back to Earth. However, as AI computing demand accelerated worldwide, the company shifted its strategy toward building orbital data centers powered directly in space.

One of the biggest challenges facing space data center companies today is transportation. Launching large-scale computing infrastructure into orbit requires rockets with massive payload capacity, and current launch systems remain expensive and limited in availability. While many startups are waiting for next-generation heavy-lift rockets to become commercially accessible, Cowboy Space has decided to take a far more ambitious route — developing its own rocket program.

According to the company, its first rocket launch could happen before the end of 2028. The startup believes owning both the launch vehicle and the orbital infrastructure will help reduce long-term costs and provide greater operational control.

The growing shortage of launch capacity has become a major issue across the space industry. Existing providers are heavily focused on their own satellite operations, leaving limited room for large-scale commercial payloads such as orbital computing platforms. This has forced many space infrastructure startups to delay their long-term visions until the next decade.

Cowboy Space argues that vertically integrating rocket manufacturing and orbital infrastructure development could provide a competitive advantage. The company plans to design rockets specifically optimized for launching AI data center satellites rather than general-purpose payloads.

Its proposed architecture is unusual compared to traditional launch systems. Instead of simply carrying satellites into orbit, the rocket’s upper stage itself would become part of the operational space data center. This approach is designed to reduce engineering complexity while maximizing efficiency.

The company expects each orbital unit to weigh between 20,000 and 25,000 kilograms and generate nearly one megawatt of power, supporting hundreds of onboard GPUs dedicated to AI processing tasks. Over time, the startup also plans to develop reusable rocket technology to lower launch costs further.

To support its ambitions, Cowboy Space has recruited experienced engineers from major aerospace firms, including former specialists from Blue Origin and SpaceX. The startup is also developing its own rocket engine technology, one of the most technically demanding areas in the launch industry.

Despite the enormous challenges involved, investors appear increasingly interested in space-based computing as Earth’s existing infrastructure faces limitations related to energy consumption, cooling requirements, and land availability. Supporters of orbital data centers argue that space could eventually offer nearly unlimited solar power and reduced environmental constraints for high-performance computing.

Industry analysts caution that the sector remains highly experimental, with significant engineering, financial, and regulatory hurdles ahead. Building reliable orbital computing infrastructure at scale could take years, and the economics remain uncertain compared to traditional terrestrial data centers.

Still, as AI systems continue consuming larger amounts of computing power, startups like Cowboy Space are betting that the next major frontier for cloud infrastructure may not be on Earth at all, but in orbit above it.