Space Data Centre Startup Starcloud Raises $250m at $2.3bn Valuation

Nvidia, Cisco Investments Join Funding Round as Company Targets Orbital AI Infrastructure Space technology startup Starcloud has raised $250 million in a new funding round that values the company at approximately $2.3 billion , as it moves to expand its plans for building data centres in orbit to support the growing demands of artificial intelligence. The latest investment represents a sharp increase in Starcloud’s valuation only months after its previous fundraising, underscoring growing investor interest in the potential of space-based computing and the infrastructure needed to power AI systems. The funding round was led by Manhattan West and attracted new investors including Nvidia and Cisco Investments , alongside existing backers such as Benchmark, EQT and Soma . Starcloud was valued at about $1.1 billion in March , when it raised $170 million. The latest investment brings the company's total capital raised since its founding in 2024 to approximately $450 million . Space-Based Computing Attracts Capital Starcloud's fundraising comes at a time of renewed enthusiasm for the space industry, following the much-anticipated public listing plans surrounding SpaceX and heightened investor interest in emerging space technologies. Among the newer areas attracting attention is the concept of orbital data centres — computing facilities placed in space that could process data and support AI workloads without relying entirely on infrastructure located on Earth. Starcloud is positioning itself at the centre of that emerging market, seeking to develop spacecraft capable of carrying advanced computing hardware into orbit. The company believes space-based infrastructure could eventually become an important part of the global computing ecosystem as demand for AI processing power continues to increase. Partnership With Nvidia A key component of Starcloud's strategy is its collaboration with Nvidia, one of the world's leading suppliers of AI computing hardware. The startup said it is working with Nvidia on the Nvidia Space-1 Vera Rubin Module , a system designed to operate in the demanding conditions of space, including exposure to radiation and extreme temperatures. The collaboration reflects the growing interest in adapting terrestrial AI computing technology for use beyond Earth. Rather than building conventional data centres solely on the ground, Starcloud aims to place computing infrastructure in orbit, where spacecraft can potentially operate continuously while taking advantage of space-based resources. Funding to Expand Manufacturing Starcloud said the newly raised capital would be used to expand its manufacturing capacity, deepen engineering collaboration with Nvidia and procure equipment and components for future products. The company is also developing a 100,000-square-foot manufacturing facility in Woodinville, Washington , where it plans to produce its next-generation Starcloud-3 spacecraft . The investment in manufacturing infrastructure marks a significant step for a company founded only two years ago and reflects its ambition to move from developing prototypes to producing orbital computing systems at scale. Ambitious Orbital Network Starcloud's long-term plans are considerably larger than its current operations. The company is targeting a constellation of 88,000 satellites and aims to establish as much as 20 gigawatts of computing capacity in orbit . If achieved, the scale would represent a dramatic expansion of computing infrastructure beyond Earth's surface and place Starcloud among the companies pursuing some of the most ambitious concepts in the emerging space-based data-centre industry. However, the project faces significant technical, manufacturing and financial challenges. Launching and maintaining tens of thousands of satellites would require substantial investment and a highly reliable supply chain, while operating powerful computing systems in space presents additional challenges related to radiation, cooling, communications and maintenance. Board Expansion The latest funding round is also bringing a new representative onto Starcloud's board. Lauren Selig of Manhattan West has joined the company's board as an observer following the investment. For Starcloud, the new funding and expanded investor base provide additional financial and strategic backing as it attempts to turn orbital data centres from an emerging concept into a commercially viable part of the global AI infrastructure market. With AI computing demand continuing to surge, Starcloud is betting that the next generation of data centres may not be confined to Earth — and that some of the world's future computing capacity could eventually operate hundreds of kilometres above it.