How Will Crusoe and Starcloud Build Data Centres in Space?

Crusoe, the vertically integrated AI infrastructure provider, has announced a partnership with Starcloud to deploy the first public cloud operating in space. 

Under the agreement, Crusoe Cloud will run on a Starcloud satellite scheduled to launch in late 2026, with GPU capacity expected to be available from orbit by early 2027.

The collaboration represents a milestone in the evolution of AI and cloud computing infrastructure, combining Crusoe’s energy-first data centre model with Starcloud’s satellite-based technology to overcome the physical and energy limitations of Earth-based facilities.

Expanding the energy frontier

Crusoe has built its business model on locating data centre operations near stranded or renewable energy sources to reduce emissions and improve efficiency.

The company’s move into orbit represents an extension of that strategy, using solar energy as an abundant and consistent power supply for high-performance computing workloads.

“At Crusoe, we believe that space will ultimately matter to the future of computing because it enables new solutions to a key scaling constraint for AI infrastructure, which is sourcing abundant, consistent and clean energy,” says Cully Cavness, Co-Founder, President and COO of Crusoe. 

“Since our founding, Crusoe has specialised on co-locating compute infrastructure with novel energy sources.

“By partnering with Starcloud, we will extend our energy-first approach from Earth to the next frontier: outer space.”

This energy-driven approach aligns with Crusoe’s broader goal of designing sustainable data infrastructure that can support the exponential rise in AI compute demand.

In space, the company will be able to bypass terrestrial grid constraints entirely, using solar power generated directly by orbital arrays to sustain operations.

Starcloud’s orbital data centre design

Starcloud’s orbital data centre concept is a satellite-based computing platform that integrates solar power generation with high-performance processors and onboard cooling systems.

The platform eliminates the need for physical land, conventional cooling or grid connections, while providing a stable and scalable compute environment.

The satellite launching in 2026 will host a dedicated Crusoe Cloud module, enabling customers to deploy AI workloads from space.

According to Starcloud, the design is capable of handling inference and training workloads for AI applications that demand high throughput and low environmental impact.

“Having Crusoe as the foundational cloud provider on our platform is a perfect alignment of vision and execution,” says Philip Johnston, CEO of Starcloud.

“Crusoe's expertise in building rugged, efficient, and scalable computing solutions makes them the ideal partner to pioneer this new era. 

“Together, we are building not just a data centre in space, but a new category of cloud computing that will unlock extraordinary possibilities for research, discovery and innovation.”

A new phase for AI and cloud infrastructure

The partnership positions Crusoe and Starcloud at the forefront of a new phase in digital infrastructure design, where data centres are no longer bound by geography or terrestrial limitations.

By placing compute infrastructure in orbit, Crusoe aims to reduce dependence on Earth-based resources while accessing virtually limitless solar energy.

Crusoe’s orbital expansion also demonstrates the company’s continued commitment to sustainable AI compute.

On Earth, the company is known for using flared natural gas and renewable energy sources to power data centres, cutting waste emissions from energy production.

Now, it plans to apply similar energy-optimisation principles to operations in space.

As AI models continue to grow in complexity and scale, access to reliable, high-density power has become a defining challenge for data centre operators.

Crusoe’s space-based initiative seeks to address that challenge directly by tapping into the most consistent clean energy source available.

Scaling the cloud beyond Earth

Crusoe and Starcloud have indicated plans to develop larger orbital data centres over time, scaling capacity as demand for high-performance AI computing increases.

This roadmap could see the construction of multiple satellites hosting decentralised compute infrastructure, effectively creating a distributed space-based cloud network.

The partnership’s long-term vision reflects a broader industry trend toward distributed and off-grid compute models.

As energy costs, land constraints and environmental pressures intensify, solutions that combine efficiency, sustainability and scalability are becoming increasingly critical.

For Crusoe, launching its cloud into orbit marks the latest evolution of its mission to reimagine how compute resources are powered and deployed.

By integrating its AI infrastructure with Starcloud’s orbital technology, the company is moving its data centre model from remote regions of Earth to the furthest possible edge – space itself.

If successful, the project could redefine how data centres are built, powered, and accessed, offering a sustainable new frontier for the next generation of AI and cloud workloads.