China Plans Space-Based AI Data Centres

China has unveiled ambitious plans to deploy space-based artificial intelligence data centres over the next five years, signalling a new phase in strategic competition in orbit. The initiative, announced through state media, positions Beijing as a direct challenger to US-based efforts to shift energy-intensive AI computing beyond Earth amid rising terrestrial power constraints.

China’s Space Cloud Vision

China’s main space contractor has outlined plans to construct “gigawatt-class space digital-intelligence infrastructure” capable of processing data directly in orbit. The proposed system will integrate cloud, edge, and terminal computing capabilities, allowing seamless coordination between satellites and ground networks. By combining computing power, storage, and high-bandwidth transmission in space, China aims to reduce dependence on Earth-based data centres and address growing energy demands driven by AI workloads.

Strategic Role in National Planning

The shift of AI processing into orbit has been identified as a core pillar of China’s upcoming 15th Five-Year Plan. Policy documents describe the creation of an industrial-scale “Space Cloud” by 2030, powered by large solar-energy hubs in orbit. The approach seeks to exploit the higher efficiency of space-based solar generation while strengthening China’s technological autonomy in critical digital infrastructure. Officials view the programme as central to long-term economic competitiveness and strategic resilience.

Competition with SpaceX and the United States

The announcement comes as US firm SpaceX advances its own plans for orbital AI data centres. SpaceX has indicated that future solar-powered data centre satellites could be deployed within the next two to three years, citing limits on Earth’s energy supply. Reusable rocket technology has given the US a cost advantage in frequent launches and satellite deployment. China, despite achieving a record number of launches last year, continues to face challenges in fully operational reusable launch systems, a key factor in reducing access-to-space costs.

Important Facts for Exams

• Space-based data centres use solar power generated in orbit.
• China’s 15th Five-Year Plan emphasises AI and space integration.
• Reusable rockets significantly reduce satellite launch costs.
• AI computing is increasingly constrained by terrestrial energy limits.

Broader Space Ambitions and Challenges

Beyond AI infrastructure, China has also announced plans to advance suborbital and orbital space tourism while expanding deep-space research capabilities. New institutions focused on interstellar navigation and propulsion reflect a long-term shift from near-Earth operations to deeper space exploration. However, analysts note that achieving sustained leadership will depend on breakthroughs in reusable launch technology and reliable large-scale orbital power generation, areas where global competition is intensifying.