Orbital is planning an ambitious project to launch a 10,000-satellite network into space, but its success relies on dramatically reduced launch costs—something currently unfeasible.

CEO Euwyn Poon admitted that while the theoretical benefits of orbital datacenters exist, today’s economics don’t support such ventures. If launch costs, presently around $7,000 per kilogram with SpaceX, decrease to the promised $10 per kilogram, the project could become viable.

While awaiting lower costs, Orbital is working on developing satellites about the size of four fridges housing 100kW equipment. Cooling these components in space is another challenge, requiring solar arrays and sizable radiators.

Orbital’s initial test will involve Nvidia’s Space-1 Vera Rubin modules next year, testing radiation hardening for space’s harsh environment. Amid funding from a16z to get initial hardware into orbit, they aim for operational expansion by 2030, contingent on improved launch economics.

The project faces skepticism, with critics like Gartner’s Bill Ray deeming space datacenters impractical for Earth-based applications.

Undeterred, Orbital seeks to tap into potential constellations, leveraging commercial possibilities despite the challenges.