Startup Raises 350 Billion Won to Build Data Centers in Space [Weekend Money]

Starcloud Raises $250 Million in Series A Funding
"Further Verification Needed for Cost and Commercialization Technology"

Space-based data centers are attracting attention as a way to overcome challenges such as securing land for ground data centers. While space data center startups like Starcloud have raised massive investments, experts note that lowering launch costs will be key going forward.

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According to the venture capital (VC) industry on August 29, Starcloud recently secured a Series A investment of 250 million dollars (approximately 350 billion won). The round was led by Manhattan West, and Starcloud's valuation was assessed at 2.3 billion dollars, double its previous level.

Starcloud has already demonstrated AI computing in space. In November last year, Starcloud-1, launched aboard a SpaceX rocket, became the first satellite to operate an NVIDIA H100 graphics processing unit (GPU) in low Earth orbit. Starcloud plans to launch the 450 kg Starcloud-2 on a Falcon 9 rideshare in January next year, and its power generation capacity will be about 8 kW—roughly 100 times that of the first unit.

Since its establishment in 2024, Starcloud has raised a total of 450 million dollars to date. The company intends to use the latest investment to expand its satellite manufacturing capabilities, purchase rocket launch services, and carry out joint engineering work with NVIDIA.

With the surge in power demand driven by artificial intelligence (AI), there are now attempts to move data centers into space. While ground-based data centers face challenges such as grid burden, cooling water needs, and land acquisition, orbital centers can stably secure large-scale power through solar energy without atmospheric interference and dissipate heat via radiative cooling, eliminating the need for cooling water.

The key point to watch is the launch cost per kW. Currently, there are numerous issues to be verified, including launch costs for space data center technology, large heat dissipation panel technology, and semiconductor reliability in radiation environments. In this context, how much the launch cost per kW can be reduced compared to ground-based solutions will determine the economic feasibility.

Jeong Heehoon, a researcher at Eugene Investment & Securities, commented, "Space-based data centers are still in the early stages of verification, and currently, the cost of building ground data centers is lower than that of space data centers, but this gap will gradually narrow. The Starcloud-2 launch early next year will provide a glimpse into the technological potential of the space data center market."

This content was produced with the assistance of AI translation services.