Crusoe and Starcloud Aim to Launch First Solar-Powered Public Cloud In Orbit for AI Workloads
Crusoe, a vertically integrated provider of AI infrastructure, has announced a strategic collaboration with Starcloud to establish the world’s first public cloud operating from space. According to the agreement, Crusoe Cloud will be implemented on a Starcloud satellite scheduled for launch in late 2026, with orbital GPU capacity expected to become available by early 2027.
This partnership represents a significant advancement in AI and cloud computing, combining Crusoe’s energy-optimized data centre architecture with Starcloud’s orbital computing platform to overcome the geographic and energy limitations of terrestrial infrastructure.
Crusoe’s business model centers around positioning data centre operations near stranded or renewable energy sources, thereby reducing emissions while enhancing operational efficiency. The company’s expansion into orbit continues this sustainability-focused strategy, utilizing solar energy as a reliable and plentiful power source to support high-performance computing workloads beyond Earth’s atmosphere.
Cully Cavness, Co-Founder, President and COO of Crusoe, stated, “We believe that space will become increasingly important for the future of computing by enabling solutions to a critical scaling constraint for AI infrastructure: the availability of abundant, consistent, and clean energy. Since inception, Crusoe has focused on co-locating compute infrastructure with innovative energy sources.”
He added, “Through our partnership with Starcloud, we are extending our energy-first approach from Earth to outer space.” This strategy aligns with Crusoe’s broader mission to develop sustainable data infrastructure capable of meeting the rapidly growing global demand for AI compute. By operating in orbit, the company can eliminate dependence on terrestrial grid systems, drawing directly from solar power generated by orbital arrays to deliver uninterrupted performance.
Starcloud’s orbital data centre platform integrates satellite-based computing with advanced solar generation, high-performance processors, and onboard cooling technology. Removing the constraints of physical land, traditional cooling, and grid infrastructure, this system offers a stable and scalable environment for sophisticated compute operations. The satellite launching in 2026 will include a dedicated Crusoe Cloud module, enabling customers to run AI workloads directly from space.
The platform is engineered to support both inference and training workloads for AI models that require high throughput and minimal environmental impact. Philip Johnston, CEO of Starcloud, commented, “Crusoe’s expertise in robust, efficient, and scalable computing solutions makes them the ideal partner to pioneer this new era. Together, we are establishing not only a data centre in space but a novel category of cloud computing poised to unlock extraordinary opportunities for research, discovery, and innovation.”
This alliance positions Crusoe and Starcloud at the forefront of a transformative period in digital infrastructure, where data centeres transcend geographical and terrestrial boundaries. By extending computing capabilities into orbit, Crusoe seeks to reduce reliance on Earth-based resources and leverage the continuous and abundant supply of solar energy available in space.
On Earth, Crusoe has gained recognition for powering data centers with flared natural gas and renewable energy sources, thus mitigating emissions associated with conventional energy production. The company now aims to apply its energy-optimized principles to orbital operations, redefining the potential for sustainable scalability in AI infrastructure.
As AI models continue to grow in complexity and scale, ensuring access to reliable, high-density power has become a critical challenge for data centre operators. Crusoe’s initiative in orbit is designed to address this issue by employing the most consistent and renewable energy source available - solar power in space.
The long-term plans of Crusoe and Starcloud encompass expanding their orbital data centre capabilities in response to increasing demand for high-performance AI computing. Their roadmap anticipates multiple satellites operating as decentralized compute nodes, ultimately forming a distributed, space-based cloud network.
This forward-looking vision is indicative of a wider industry movement towards distributed and off-grid compute models. With rising energy costs, limited land availability, and mounting environmental pressures, solutions prioritizing efficiency, sustainability, and scalability are essential. Launching its cloud infrastructure into orbit marks a pivotal progression in Crusoe’s commitment to reimagining how compute resources are powered and deployed.
By integrating its AI infrastructure with Starcloud’s orbital technology, Crusoe is evolving its data centre model from remote Earth locations to the final frontier - space. If successful, this initiative could revolutionize the design, operation, and accessibility of data centers, presenting a sustainable new paradigm for the next generation of AI and cloud applications.
On October 24th, Crusoe announced it had raised $1.4 billion of Series E funding, bringing its valuation to $10 billion, as it works to advance its vertically integrated AI solutions and Crusoe Cloud platform. The oversubscribed funding round was co-led by Valor Equity Partners and Mubadala Capital, with major contributions from prominent firms, including: 137 Ventures, Altimeter Capital, Fidelity, Founders Fund, NVIDIA, Salesforce Ventures, Tiger Global, and others. Blue Owl-managed funds are also expected to participate in a future closing.