A University of Arizona research team is shaping the coming wave of computing: data centers that orbit Earth, reducing environmental impacts of terrestrial centers while improving security and performance. 

The team’s project, AZSCI, pronounced as “A-Z Sky,” complements commercial efforts to host cloud computing infrastructure in space, focusing on surmounting technical obstacles while addressing other factors such as safety and policy requirements and business models. AZSCI is among six initiatives to receive $250,000 as part of the Office of Research and Partnerships’ inaugural Big Idea Challenge, a program designed to catalyze solutions to some of society's most pressing issues. 

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“The university has an opportunity to stay ahead of the curve, become the domain leader and radically rethink what is possible,” said Krishna Muralidharan, principal investigator for AZSCI and director of the U of A Center for Semiconductor Manufacturing.

AZSCI invites the burgeoning space computing industry to tap into the U of A’s capabilities in fields ranging from optics to techno-economics, said co-principal investigator Karthik Kannan, the Halle Chair of Leadership and dean of the Eller College of Management.

“There is huge potential for companies. The U of A can bundle our strengths, and they can benefit from making investments,” Kannan said. “The next wave of innovation and exploration is in space. This becomes the stepping stone.”

Early commercial efforts highlight growing interest in space-based computing capabilities. U.S. startup Starcloud recently launched a satellite demonstrating early in-orbit computing capabilities, while Google’s Suncatcher project plans to launch test satellites by 2027 for machine learning workloads. Additionally, Axiom Space is developing orbital infrastructure with embedded computing capabilities. The U of A team is focused on an industry-facing effort to move the concept from theory to practice.

“Space-based data centers represent a profound shift in how the world will store, process, move and secure information, and the University of Arizona intends to help shape that future,” said Tomás Díaz de la Rubia, senior vice president for research and partnerships. “Few institutions have the breadth of expertise needed to turn this concept into reality. By uniting our strengths across advanced semiconductor manufacturing, optical and space sciences, and policy, we are positioning the university – and our partners – to lead a transformative technological frontier.”

Global problems meet local initiative

With support from public- and private-sector partners, U of A faculty are leading additional research projects aimed at reducing energy and water consumption in Earth-bound data centers. 

These traditional data centers consume vast amounts of electricity to power thousands of high-performance computers running around the clock that enable modern artificial intelligence, handle immense datasets, store email and business files and more. The U.S. Energy Information Administration estimates that computing accounted for around 8% of commercial sector electricity consumption in 2024 and could grow to 20% by 2050.

The centers also require large amounts of water for cooling, through a combination of direct cooling and indirect electricity generation. A 2025 Congressional Research Service report cites a study indicating that a large U.S. data center may consume roughly the same amount of water as 2,600 households, accounting only for direct consumption. 

An orbital data center – a constellation of satellites in orbit outside of Earth's atmosphere – offers solutions to those challenges. Operating in space eliminates the need for land, leverages abundant solar power and naturally cool conditions for better energy efficiency. 

Fully operational orbital centers could be a reality within the next 10 to 15 years, according to industry studies such as Europe’s ASCEND feasibility project. 

"As Southern Arizona expands its technology sector, we need forward-thinking solutions that not only drive economic growth but also strengthen our digital infrastructure – without overtaxing our natural resources," said Tucson City Council member Nikki Lee. "The U of A's research, bridging academic expertise with the real-world demands and environmental benefits of space-based computing, is crucial for securing our data future and attracting the next wave of high-tech investment to our region."

Setting the technical foundation

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An initial AZSCI objective is to natively design data center hardware and systems to operate in space, Kannan said. These platforms include servers, storage, power and cooling equipment and communications technology.

“For each of these challenges, the U of A has the expertise to make it work,” he said.

Equipment-related obstacles include making space launch efficient enough to justify the fuel cost, protecting the hardware against radiation and solar storms, and making it modular – built in separate units that can be added, replaced or upgraded individually.

Communications between the satellites and with Earth present another challenge: maintaining fast, reliable connections across vast distances and through Earth’s atmosphere. Orbital data centers are expected to use optical links via lasers, providing significant advances such as high bandwidth and low-latency data transmission while helping to offset atmospheric absorption and scattering effects.

Muralidharan, also a professor of materials science and engineering, is focused on integrating materials and devices that can function in extreme space environments and are fully capable of supporting emerging technologies, such as neuromorphic computing – which models brain-like processing for greater efficiency – as well as quantum computing and quantum communications as they advance.

“Without materials, none of this happens,” he said. “We will tackle material challenges in stages.”

The first step will be modifying existing technologies, testing how they perform in space and gradually adapting them for harsher conditions. Later phases would introduce new materials and hardware, enhancing space computing security by reducing cyber vulnerabilities and enabling rapid decision-making in orbit.

Defining rules, building relationships

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By the end of the Big Idea Challenge period, in 2027, the researchers plan to present analyses of the concept’s potential economic performance and regulatory frameworks. Considerations include clarifying ownership in space, where international treaties currently prevent claiming orbital regions as property. The researchers will also address ethical concerns, such as distribution of financial gains and burdens, said AZSCI member Elizabeth Baldwin, associate professor in the School of Government and Public Policy.

“It’s beneficial for a university to focus on serving the public good as the world moves toward orbital data centers,” she said.

The team plans to finalize related university curriculum and demonstrate a digital twin of an orbital data center. This comprehensive virtual representation will test and demonstrate components such as software and communication and model response options to cyberattacks and other scenarios. After presenting the digital twin to potential industry and government partners, the team can incorporate their input into physical prototypes customized to meet specific needs, such as national defense.

The digital-first model also helps AZSCI team members ensure their work doesn’t contribute to space debris – human-made objects that are no longer functioning but remain in orbit. 

As the team prepares for these coming phases, Muralidharan said the Big Idea Challenge seed funding equips the project to move forward effectively.

“It allows us to nucleate around a good idea and bring all the stakeholders into place,” he said. “We can grow this into something that's feasible and tangible. It’s not pie in the sky.”