There aren’t enough rockets for space data centers — Cowboy Space raised $275M to build them

2026-05-11 · Source: AI News & Artificial Intelligence | TechCrunch · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Cloud Computing & IT Infrastructure, Emerging Technologies & & Innovation · Depth: Novice, short

Summary

Cowboy Space Corporation, formerly Aetherflux, has secured a $275 million Series B funding round, led by Index Ventures, at a $2 billion post-money valuation. The company, founded by Robinhood co-founder Baiju Bhatt, is pivoting from space-based solar energy to developing orbital data centers for AI compute. Facing a critical shortage of available rocket launch capacity and high costs from providers like SpaceX and Blue Origin, Cowboy Space plans to develop its own rocket program, with a first launch anticipated by late 2028. This strategy aims to overcome current logistical and economic hurdles in deploying large-scale space data centers, which are increasingly sought after due to the "insatiable demand for AI compute."

Key takeaway

For CTOs and investors evaluating long-term AI infrastructure strategies, Cowboy Space's pivot highlights the severe launch capacity constraints impacting orbital data center viability. You should assess whether your reliance on external launch providers for future space-based initiatives introduces unacceptable scaling risks or cost inefficiencies, potentially warranting a review of vertical integration for critical components.

Key insights

Orbital data centers face launch capacity constraints, prompting a vertically integrated approach to rocket development.

Principles

• Vertical integration can mitigate supply chain bottlenecks.
• Market demand can drive unconventional strategic pivots.

Method

Develop proprietary launch vehicles with integrated data center payloads to ensure dedicated capacity and optimize unit economics for orbital AI compute.

In practice

• Evaluate vertical integration for critical supply chain dependencies.
• Consider purpose-built designs for specialized payloads.

Topics

• Cowboy Space Corporation
• Space Data Centers
• Rocket Development Program
• Orbital Launch Capacity
• AI Compute Demand

Best for: Entrepreneur, Investor, CTO

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI News & Artificial Intelligence | TechCrunch.