Starcloud Secures $170 Million to Build Orbital Data Centers Amidst Rising Competition
Starcloud has achieved a $1.1 billion valuation after raising $170 million in Series A funding, targeting orbital data center infrastructure. The company aims to leverage low Earth orbit for AI computation, addressing limitations faced by terrestrial data centers.
Starcloud, a startup based in Redmond, Washington, has raised $170 million in a Series A funding round, elevating its valuation to $1.1 billion and achieving unicorn status. This latest funding increases its total capital to $200 million, with major contributions from Benchmark, EQT Ventures, and angel investors including former Boeing CEO Dennis Muilenburg.
AI-curated by TheiaThe company targets the establishment of data processing facilities in low Earth orbit to utilize continuous solar energy and mitigate land and power constraints associated with traditional data centers. Starcloud's Starcloud-1 satellite, launched in November 2025, successfully demonstrated AI model training in space.
The follow-up satellite, Starcloud-2, is set for launch in October 2026, promising increased power capacity and commercial capabilities. Starcloud plans to build a constellation of up to 88,000 satellites, positioning itself in a competitive landscape alongside SpaceX and Blue Origin, both pursuing similar orbital infrastructure initiatives. The long-term vision anticipates achieving price parity with ground-based data centers by 2028 or 2029.
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