The booming demand for AI computing power is driving data center ventures into orbit, but a lack of reliable and affordable rockets is a bottleneck. Cowboy Space Corporation, founded by former Robinhood co-founder Baiju Bhatt, secured $275 million in Series B funding to develop purpose-built rockets and launch its orbital data centers within the next few years.
- Cowboy Space raised $275M, valued at $2B, to develop rockets for space data centers.
- Launch capacity shortages from established providers drive Cowboy Space’s vertical integration.
- First launch is targeted by 2028, focusing on tailored data center rockets for AI computation.
What happened
Cowboy Space Corporation announced a $275 million Series B funding round led by Index Ventures, boosting its valuation to $2 billion. The funding will support developing proprietary rockets designed to deploy orbital data centers. Founded in 2024 by Baiju Bhatt, previously known for Robinhood, the company pivoted from an initial focus on space-based solar power to concentrating on orbiting AI compute infrastructure.
Unable to secure sufficient launch capacity from existing providers such as SpaceX and Blue Origin, Cowboy Space decided to build its own rockets. This strategy responds to a broader industry challenge where launch vehicles remain limited and expensive, delaying the deployment timelines for space data centers. Cowboy Space aims for its first launch before the end of 2028.
Why it matters
The growing demand for AI processing power is stressing terrestrial data centers, prompting exploration of space-based solutions that could leverage abundant solar energy and cooler environments in orbit. However, the lack of reliable and affordable rockets has been a critical impediment, with major providers still facing developmental and availability challenges.
By designing rockets with integrated data centers as the second stage, Cowboy Space hopes to streamline operations and optimize costs. Its planned payload will have around 800 GPUs powered by 1 megawatt of onboard electricity, with rocket capabilities slightly exceeding those of established vehicles like SpaceX’s Falcon 9. This approach targets a market that could accommodate multiple winners given the scale of AI compute demand.
What to watch next
Stakeholders will closely monitor Cowboy Space’s rocket development progress toward its 2028 launch goal, as success could reshape the supply chain and economics of deploying data centers in orbit. The company also faces competition from established aerospace players like SpaceX and Blue Origin, who are advancing their own launch vehicles but have not yet reached stable commercial operations for large-scale data center delivery.
The broader space data center sector will be influenced by how launch capacities evolve over the next few years, including the operational availability of SpaceX's Starship and improvements by other new entrants. Alongside hardware development, regulatory, technical, and economic factors will be crucial as space compute moves toward commercial viability.