From satellites to space data centers: Why low earth orbit is attracting billions in investment

In this article ETL-FR AMZN NVDA Follow your favorite stocks CREATE FREE ACCOUNT Europe's Ariane 6 rocket takes off, in Kourou, French Guiana, July 9, 2024. European Space Agency ESA | Via Reuters A new layer of critical infrastructure is emerging above our heads. Low Earth Orbit — which NASA defines as the stretch of space at an altitude of 2,000 km or less — is rapidly evolving from a niche technical domain into one of the most strategically important environments of the 21st century. It underpins global navigation, telecommunications, defense and worldwide connectivity and is seeing a flood of investment. LEO satellites, with their relative proximity to Earth, deliver quicker responses, reduced launch costs and faster communication speeds. Unlike satellites in more elevated orbits, they do not stay above a fixed spot on Earth and often work in constellations to maximize global coverage. Higher trajectories, such as Medium Earth Orbit and Geostationary Orbit , host long‑established satellite infrastructure, but they are subject to more rigid operational constraints. More than $45 billion worth of investment in the sector was recorded in 2025, up sharply from just under $25 billion in 2024, according to Space IQ, a report tracking startup activity and investment trends in the space economy. "Orbital access is becoming a strategic asset much like ports, cables, or energy grids on Earth," Carlos Moreira, CEO of Swiss cybersecurity and semiconductor firm Wisekey, told CNBC. watch now VIDEO 6:05 06:05 Nokia CEO: Musk's vision of an AI data centre in space is something we all need to support Squawk Box Europe The most visible example of this shift is Elon Musk 's rapidly expanding satellite network. His rocket company, SpaceX, already operates the Starlink constellation, which currently has more than 9,500 satellites flying. The company plans to expand this network by adding thousands more satellites. SpaceX has also proposed an even larger project, a solar-powered orbi...