China Approves Beijing Space Computing Center as US Eyes Orbital AI Networks

3 articles · Updated · The Straits Times · Jun 28

Beijing approved its first space computing innovation center in early June, linking rocket, satellite, chip and AI firms to build orbital computing networks.
The push targets AI’s heavy land, power and water demands on Earth by processing satellite data in orbit with solar-powered systems and sending only refined results to the ground.
China’s move sharpens competition with the US, where SpaceX has floated plans for up to 1 million data-center satellites and Nvidia said in March it would make GPUs for space computing.
China already launched 12 computing satellites in May 2025 for its Three-Body constellation and says tests showed large AI models can run directly on satellite hardware.
Costs remain the biggest obstacle: Wood Mackenzie estimates a 1-gigawatt orbital data center would cost about $170 billion, roughly 3 times an Earth-based equivalent, and launch costs must fall 70% to compete.

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Orbital AI Arms Race: China’s Space Computing Center and the Global Battle for Space-Based Data Dominance

Overview

As global demand for AI computing power rises and satellites produce more data, governments and tech giants are pushing AI infrastructure beyond Earth through orbital data centers. China has taken a major step by launching the Beijing Space Computing Center, aiming to advance the space computing industry and strengthen its position in the race for space-based AI. This center focuses on satellite IoT, offering more resilient connectivity than traditional networks. By integrating space-based computing with terrestrial applications, China is setting the stage for a new era of global competition in AI and digital infrastructure.

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