Cowboy Space raises $275 million to build rockets for orbital data centers

In short: Cowboy Space Corporation raised $275 million to develop its own rockets so it can put data centers in orbit.

What happened

Cowboy Space Corporation says demand for AI computing is pushing some companies to consider “space data centers,” meaning server farms placed in orbit, like putting a warehouse of computers above the Earth.

The company announced it closed a $275 million Series B funding round at a $2 billion valuation. Index Ventures led the round, and Breakthrough Energy Ventures, Construct Capital, IVP, and SAIC also joined.

Baiju Bhatt, the company’s CEO and a co-founder of the stock trading app Robinhood, told TechCrunch that the big problem is a shortage of rockets and high launch costs. Many space data center plans are waiting on large rockets like SpaceX’s Starship or Blue Origin’s New Glenn. Cowboy Space says those options may not be available in enough volume for years, so it plans to build its own rocket program and aims for a first launch before the end of 2028.

Cowboy Space started in 2024 under the name Aetherflux, with a plan to collect solar energy in space and send it to Earth. The company later shifted toward using that power for computing while in orbit, and then shifted again toward building rockets to make the plan workable.

Why it matters

If more companies try to run computing in space, the biggest bottleneck may not be the computers, it may be the ride to get them there. Cowboy Space’s plan also shows how AI demand is affecting real world infrastructure, including rockets, factories, and power supply, not just software.

Source: TechCrunch AI