Chennai-based AgniKul Cosmos and Bengaluru’s NeevCloud aim to deploy a proof-of-concept orbital AI data centre by 2026, joining global technology giants in the fast-emerging race to build space-based computing infrastructure.
India has formally entered the race to take artificial intelligence infrastructure beyond Earth’s atmosphere. Chennai-based space-tech startup AgniKul Cosmos and Bengaluru-headquartered AI cloud firm NeevCloud have unveiled plans to jointly develop an orbital AI data centre platform, with a proof-of-concept mission targeted for late 2026 and commercial operations expected in 2027.
The initiative signals a bold shift in how next-generation AI workloads may be powered and cooled. As AI models grow larger and more energy-intensive, terrestrial data centres are increasingly grappling with electricity shortages, land constraints and water-intensive cooling requirements. Industry estimates suggest that training a single large-scale AI model can consume as much power as hundreds of households use in a year.
Space as the next computing frontier
In low-Earth orbit (LEO), satellites benefit from near-continuous solar exposure, offering a steady renewable power source. The vacuum of space also enables passive thermal management, reducing dependence on water-based cooling systems. Together, these factors make orbit an attractive alternative for hosting high-performance AI chips without straining Earth’s grids.
The global push toward space-based computing is gathering momentum. In January 2026, SpaceX, led by Elon Musk, reportedly sought regulatory approval in the United States to deploy a vast network of compute-enabled satellites. The strategy builds on its Starlink satellite constellation and aligns with Musk’s broader AI ambitions through xAI, creating an integrated ecosystem spanning rockets, satellites and AI models.
Elsewhere, companies such as Google and Blue Origin are exploring orbital computing clusters, while China has outlined plans for a large-scale “Space Cloud” constellation.
India’s distinct approach
What differentiates the Indian effort is its integrated design philosophy. AgniKul is developing a patented system that repurposes a rocket’s upper stage after payload deployment, transforming it into a stable, power-generating orbital platform capable of hosting NeevCloud’s AI hardware. By converting what is typically discarded hardware into a functional satellite bus, the model aims to reduce launch costs and improve efficiency.
If successful, the collaboration could position India not merely as a launch service provider, but as a key architect of the emerging orbital digital economy—where computing power may one day orbit alongside communications and Earth observation satellites.
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