Orbital, a tech startup, has unveiled an ambitious plan to deploy a massive array of 10,000 satellites to form a ‘neocloud’ infrastructure in outer space. This initiative could revolutionize data processing but currently faces significant economic hurdles.

Speaking with industry insiders, CEO Euwyn Poon acknowledged the current infeasibility of launching space-based datacenters. The logistics still demand substantial cost reductions in launching payloads. Poon emphasizes, ‘Our goal aligns with achieving economic launch solutions, but current logistics present a substantial challenge.’

The cost estimates to send payloads into space, particularly on SpaceX’s Falcon 9 missions, highlight the prohibitive expense, standing around $7,000 per kilogram. Though Musk’s vision targets reductions to $10 per kilogram, skepticism about meeting this target remains due to past unmet goals.

While Orbital anticipates availability of launch opportunities—potentially from competing entities like SpaceX and Blue Origin—they are concurrently advancing satellite construction. Orbital’s vision includes satellites tasked with housing thermal management and computing equipment suitable for space conditions.

Furthermore, Orbital’s development plan includes a smaller version for testing purposes. This initiative will explore critical technical configurations such as radiation hardening and energy efficiency before full deployment planned for 2030.

Despite concerns, the startup seeks to cement partnerships and secure necessary financing, driven by the ultimate aim of implementing a scalable, orbiting datacenter infrastructure. However, experts caution the path to sustainable, cost-effective space datacenters could take decades.

Funding from notable VCs like a16z helps propel Orbital’s test mission, inching closer to its operational goals. Nonetheless, industry analysts like Bill Ray suggest caution, pointing out the significant technological and logistical hurdles that lie ahead. Until such innovations mature, the concept of orbiting datacenters remains largely speculative.