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Space Data Centers: Google, Amazon, and Meta Poised for Orbital Testing

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

Key Takeaways

  • Launch costs need to plummet to under $300/kg from current rates of $1,500–$3,600/kg before space-based data centers become economically feasible
  • Building a 1-GW orbital facility would exceed $100B at today’s prices, compared to $35B–$50B for terrestrial alternatives
  • BNP Paribas predicts Google, Amazon, and Meta will conduct initial pilot programs once economic barriers decrease
  • Elon Musk projects space will become the “most economically compelling” location for AI infrastructure in 30–36 months
  • Starcloud, backed by Nvidia, successfully deployed the first Nvidia H100 GPU to orbit in November 2025

Orbital data centers are transitioning from speculative concept to serious strategic consideration. A recent analysis from investment bank BNP Paribas explores this emerging possibility, though the firm concludes current economics remain prohibitive.

With present-day launch expenses ranging from $1,500 to $3,600 per kilogram, constructing a 1-gigawatt space-based data center would exceed $100 billion in total costs. By comparison, an equivalent terrestrial installation runs between $35 billion and $50 billion.

According to BNP analyst Nick Jones, the bank considers orbital data centers unfeasible as a “viable near- to medium-term solution.” Jones pointed to prohibitive launch expenses, costly space-rated components, and complex challenges surrounding thermal management and power systems in the vacuum of space.

BNP’s analysis indicates that launch costs must decrease below $300 per kilogram for the concept to achieve economic feasibility. This represents a substantial reduction from current market rates.

Should costs reach that threshold, BNP anticipates Google, Amazon, and Meta will be positioned as frontrunners to conduct preliminary proof-of-concept trials with orbital computing platforms. The bank’s report did not specify a projected timeframe for this development.

The Energy Challenge Driving Space Solutions

The motivation for orbital infrastructure stems largely from AI’s escalating power requirements. Terrestrial data centers are consuming electricity at unprecedented levels. According to Department of Energy figures, US data centers represented approximately 4.4% of the nation’s total electricity usage as of 2023.

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McKinsey projects that satisfying global data center demand through 2030 will necessitate $6.7 trillion in infrastructure investment. Technology sector capital expenditures are forecast to reach $600 billion in 2026, with Amazon alone committing $200 billion to expansion.

Elon Musk has positioned space-based computing as central to SpaceX’s long-term vision. He’s projected that within 30 to 36 months, orbital environments will become the “most economically compelling place” for AI computing infrastructure. SpaceX aims to deploy a constellation comprising one million satellites functioning as orbital data centers, each producing approximately 100 kilowatts of computational capacity per ton.

Musk’s rationale centers less on operational cost savings and more on energy accessibility. He’s highlighted that electrical generation outside China has remained essentially stagnant, creating uncertainty about power sourcing for new terrestrial data center development.

SpaceX Advances Beyond Planning Phase

SpaceX has progressed from conceptual discussions to active recruitment. Michael Nicolls, who serves as vice president of Starlink Engineering, announced via X that the company is filling “many critical engineering roles” supporting space-based data center initiatives, including a Space Lasers Engineer position located in Redmond, Washington.

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The company revealed plans to acquire Musk’s AI venture xAI, emphasizing orbital AI infrastructure as a strategic long-term objective.

Proof-of-Concept Missions Underway

In November 2025, Nvidia-supported startup Starcloud achieved a milestone by deploying the first Nvidia H100 GPU to orbit aboard a SpaceX Falcon 9 launch vehicle. The Starcloud-1 satellite weighed approximately 60 kilograms — comparable to a compact refrigerator.

Starcloud’s ultimate vision encompasses a 5-gigawatt orbital data center spanning roughly 4 kilometers, equipped with extensive solar arrays and thermal management panels.

BNP acknowledged that long-term technological improvements in satellite communications, cooling architectures, and photovoltaic systems could eventually narrow the operational cost gap between orbital and ground-based data center facilities.

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Latin America’s crypto user growth outpaced U.S. by 3x in 2025, report shows

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Evolution of active crypto app users (Lemon)

Latin America’s crypto market is expanding far faster than that of the United States as users increasingly rely on cryptocurrencies for payments and cross-border transfers rather than speculation. a new report claims.

The region, according to a report from Argentinian crypto firm Lemon, received more than $730 billion in cryptocurrency transaction volume in 2025, a 60% increase from the previous year, representing roughly 10% of global crypto activity.

Growth was not only measured in transaction volume. Monthly active crypto app users in Latin America rose about 18% year over year, roughly three times faster than growth in the United States, the report said.

Brazil dominates the region by transaction size.

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Evolution of active crypto app users (Lemon)

The country received $318.8 billion in crypto value with growth approaching 250% year over year, driven largely by institutional trading and expanding regulatory clarity for financial institutions.

Argentina shows a different pattern. Despite inflation falling to about 32% in 2025, crypto adoption continued to rise. Average monthly users were four times higher than during the 2021 bull market, according to the report.

One driver is cross-border payments. Argentine fintech companies linked crypto rails to Brazil’s PIX instant payment system, allowing users to pay Brazilian merchants using pesos while stablecoins such as USDT settle the transaction behind the scenes.

The integration led to 5.4 million crypto app downloads in Argentina during 2025, with January downloads hitting a record level.

Peru, which back in January saw Bybit Pay integrate with digital wallets Yape and Plin, emerged as one of the fastest-growing markets. Crypto app users doubled as interoperability rules allowed banks and digital wallets to connect. Transfers between banks and wallets surpassed 540 million transactions, up 120% year over year.

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Stablecoins are playing a central role in the shift toward practical use cases. Across the region, users rely on digital dollars to send money abroad, receive funds from platforms like PayPal and bypass traditional banking networks, the report points out.

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How Much Bitcoin Can Michael Saylor Buy via Strategy’s STRC Stock?

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How Much Bitcoin Can Michael Saylor Buy via Strategy’s STRC Stock?

Michael Saylor’s Strategy may purchase more Bitcoin (BTC) in the coming weeks through the proceeds from its STRC stock sales.

Key takeaways:

What is STRC stock?

Michael Saylor’s Strategy (MSTR) owns about $50 billion in Bitcoin, the highest by any public company on record.

Stretch (STRC) is Strategy’s income-focused preferred stock launched in July 2025 to raise capital for its Bitcoin accumulation strategy.

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In its IPO, the company raised about $2.521 billion gross and $2.474 billion net. It then used those proceeds to acquire 21,021 BTC at an average price of about $117,256.

Strategy later expanded that model by launching a $4.2 billion STRC at-the-market (ATM) program on July 31, 2025, allowing it to sell preferred shares gradually into market demand rather than all at once.

How does STRC work?

The mechanism works best when STRC trades near or above its $100 target. For that, Strategy pays a variable monthly yield to investors, adjusting it to keep the stock close to its par value.

Higher yield can support the price when it falls below par, while a lower yield can cool demand when it rises too far above it. For March 2026, the annualized STRC rate is 11.50%, or about $0.958 per share monthly.

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STRC price performance in the past month. Source: BitcoinQuant.CO

In short, STRC turns investor demand for yield into funding for more BTC purchases.

For example, in January, Strategy sold about 1.19 million STRC shares for $119.1 million in net proceeds, alongside $1.12 billion raised through MSTR sales.

It used the combined capital to purchase 13,627 BTC for roughly $1.25 billion.

In February, STRC proceeds worth $78.4 million were used in the purchase of 2,486 BTC net.

Saylor may have $302 million in STRC proceeds

Strategy may soon raise over $300 million through sales of its STRC preferred stock, potentially giving Michael Saylor enough firepower to buy roughly 4,300 Bitcoin, according to estimates from BitcoinQuant.

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The projection is based on STRC’s trading activity this week. BitcoinQuant’s model shows about $777 million in total volume, with roughly 97%, or $755 million, traded above the stock’s $100 par value.

STRC ATM analysis. Source: BitcoinQuant

Using a 40% capture rate, the model estimates around $302 million in net proceeds, enough to purchase about 4,334 BTC, based on average Bitcoin prices of $68,000 to $73,000 during market hours.

Friday alone saw a record $188 million in STRC trading volume, implying enough potential proceeds to fund the purchase of around 1,097 BTC, based on the same model.

Related: Michael Saylor’s Strategy buys $204M of Bitcoin in 101st purchase

The figures remain speculative for now, however. Strategy’s latest filing showed only $7.1 million in STRC sales contributing to a broader 3,015 BTC purchase.

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Whether this week’s trading surge translates into a much larger Bitcoin buy should become clearer in the company’s next SEC filing, releasing on March 9.