In an industry that thrives on bold innovation, Lumen Orbit is already making waves. Launched earlier this year by three satellite engineers, the Redmond, Washington-based start-up is on a mission to revolutionize space internet through optimized satellite design.

Backed By Big-Name Investors

Venture capitalists are taking notice. This week, Lumen Orbit secured an $11 million seed round, boosting the company’s valuation to an impressive $40 million, according to TechCrunch. High-profile investors such as NFX and Soma Capital are already on board, with Andreessen Horowitz and Sequoia reportedly showing interest as well. Industry insiders hint that plans for a new funding round are already in motion, signaling strong confidence in Lumen Orbit’s potential.

A Vision For Space-Based Data Centers

So, what’s driving all this excitement? Lumen Orbit’s ambitious goal is to relocate data centers to orbiting satellites in space. This vision places the company at the heart of the “new space economy” — an emerging sector where governments and private enterprises explore the possibilities of establishing data hubs beyond Earth’s atmosphere.

One notable example of this trend is ASCEND (Advanced Space Cloud for European Data Sovereignty and Net Zero Emissions), a project spearheaded by Thales Alenia Space as part of the European Commission’s Horizon Europe programmes. The initiative aims to demonstrate the technical feasibility and environmental benefits of space-based data centers.

The Case For Space-Based Data Centers

Why send data centers to space? The rationale is compelling. On Earth, data centers require substantial amounts of land and water to maintain optimal cooling for their vast hardware systems. Space, however, offers infinite real estate and naturally low temperatures, eliminating two major resource constraints.

Solar energy would power these orbiting hubs, while batteries store excess energy to cover periods without direct sunlight. This approach has the potential to drastically reduce operational costs while making data centers more sustainable. Lumen Orbit’s satellite hubs could feasibly support both computing operations and data transmissions back to Earth.

What’s Already Up There?

While the concept may seem futuristic, some groundwork has already been laid. Projects like the Stacked Miniaturized and Radiation Tolerant Intelligent Electronics (SMARTIE) facility are early indicators of what’s possible. SMARTIE’s system uses “tiles” to achieve over 300 gigaflops of computing power per unit. These satellites, equipped with BAE Systems’ RAD750 single-board computers, process sensor data and manage artificial intelligence-related tasks in space.

These developments illustrate that the leap to space-based data centers isn’t as far-fetched as it may seem. They mark the initial steps toward a larger shift in how and where we handle large-scale computing needs.

The Cost Advantage

A key driver of Lumen Orbit’s business case is cost reduction. According to co-founder Philipp Johnston, a Harvard and Columbia graduate, shifting data centers to space could drastically lower operational expenses. “Instead of paying $140 million for electricity, you can pay $10 million for a launch and solar,” Johnston explained.

Johnston’s co-founders also bring impressive credentials to the table. Chief Technology Officer Ezra Fielden previously worked at Airbus and contributed to NASA’s research efforts. Adi Oltean, another co-founder, was a principal software engineer at SpaceX, where he worked on Starlink’s cutting-edge satellite internet technology. Together, the trio’s combined expertise provides Lumen Orbit with a formidable foundation for success.

The Road Ahead

Though the concept of space-based data centers may sound like the stuff of science fiction, the business logic is undeniable. As demand for efficient and sustainable data processing grows, Lumen Orbit’s proposal to leverage space as a new frontier for data operations is attracting investors and sparking industry-wide interest.

With deep-pocketed backers and a bold vision, Lumen Orbit is well-positioned to capitalize on a burgeoning trend. If successful, the company’s satellites could usher in a new era of data management, bringing faster speeds, lower costs, and greener solutions to an increasingly data-driven world.