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The Indian Space Research Organisation (ISRO) is conducting a preliminary study on establishing in-orbit Artificial Intelligence data centres, as confirmed by the Department of Space. This initiative aims to enable satellites to process and store data in orbit, alleviating bandwidth constraints and reducing latency in applications like satellite imaging and communications.

ISRO's evaluations indicate technical viability, leveraging advancements in satellite hardware and solar power. The concept seeks to address challenges posed by traditional Earth-based data centres. However, engineering hurdles remain, including radiation resistance and power limitations.

ISRO's efforts align with global initiatives, such as Google's Project Suncatcher, which aims for solar-powered AI satellite clusters by 2027. The project could revolutionize earth observation and enhance communication capabilities. A prototype could launch within 3-5 years, contingent on funding, as ISRO positions itself in the global space economy, projected to exceed $1 trillion by 2040.