Jeff Bezos’ Blue Origin seeks approval for space-based data centres after Amazon Leo challenged SpaceX proposal

Blue Origin, the space company founded by Amazon chairman Jeff Bezos, has asked the US government for approval to launch a vast network of satellites that would work as data centres in space.

What’s ironic is that this move comes shortly after Amazon’s satellite internet division, Amazon Leo, urged the US Federal Communications Commission (FCC) to reject SpaceX’s plan to deploy up to one million satellites as orbiting data centres.

In a 17-page filing, Amazon said SpaceX’s proposal is unrealistic and does not include enough technical detail for proper review. It argued the project could take “centuries” to complete and warned it might interfere with other operators in low-Earth orbit.


Blue Origin’s “Project Sunrise” plan

In its March 19 filing to the FCC, Blue Origin outlined “Project Sunrise." This would be a network of satellites designed to carry out advanced computing tasks in space.

The company says the goal is to “ease mounting pressure on US communities and natural resources by shifting energy — and water-intensive compute — away from terrestrial data centres.”

Blue Origin argues that growing demand for artificial intelligence (AI) is putting strain on existing infrastructure. It believes orbiting data centres could support this demand by acting as an additional layer of computing capacity.

The proposal includes launching up to 51,600 satellites. These would operate in sun-synchronous orbits between 500 and 1,800 km above Earth. Each orbital path would contain around 300 to 1,000 satellites.

To move data between satellites and the ground, the system would rely mainly on optical (laser-based) links. These would connect through its TeraWave system and other networks. (TeraWave is a planned, ultra-fast satellite internet system designed to act as a high-speed backbone for the internet.)

Why Blue Origin says space data centres matter

1. Expanding infrastructure in a more sustainable way

Blue Origin says space-based data centres could help meet the growing need for computing power while reducing pressure on Earth’s resources.

Satellites in sun-synchronous orbit receive near-constant sunlight, allowing them to generate continuous solar power. This means they can run without drawing electricity from Earth’s grids or using water for cooling, which is common in traditional data centres.

By moving some computing into space, the company says total capacity can grow while leaving Earth-based infrastructure available for uses that cannot be moved off-planet.

It also argues that increased competition in this area will lead to better technology and more efficient use of resources.

2. Making AI computing more accessible

Blue Origin highlighted the wider benefits of AI, including improvements in healthcare, farming, education, and climate research. However, it says these benefits are limited by the availability and cost of computing power.

The company believes space-based data centres could reduce costs. This is because they rely on solar energy, avoid land use, and do not depend on local power grids.

It stated, “The economics of space-based compute will enable access at price points that were previously unattainable.”

The project would support companies developing artificial intelligence (AI) tools, helping to drive progress in areas such as machine learning and predictive analysis.

3. Efficient use of communication systems

Project Sunrise would mainly use optical links (lasers) for communication between satellites, reducing reliance on traditional radio frequencies.

However, for safety and reliability, especially during launch, early operation, or emergencies, the satellites would use radio signals in specific frequency bands.

These include the 18.8–19.3 GHz range (space-to-Earth) and 28.6–29.1 GHz (Earth-to-space), which are already allocated for satellite services.

Blue Origin says it will operate on a non-interference basis, meaning it aims not to disrupt other systems using the same frequencies.

Key challenges and concerns

While interest in space-based data centres is rising, there are major challenges.

One issue is cost. Sending large amounts of computing equipment into space is expensive. Many companies are relying on future reductions in launch costs, especially from new rockets like SpaceX’s Starship, which is still under development.

There are also technical hurdles. Systems must be designed to handle the harsh conditions of space, including radiation. Cooling computer processors without Earth-like conditions is another difficulty.

Communication between satellites using lasers also needs to be reliable and affordable at scale.

Concerns about space and the environment

Another major concern is overcrowding in orbit. Low-Earth orbit is already becoming busy, and adding tens of thousands of satellites increases the risk of collisions.

There are also environmental questions. When satellites reach the end of their life, they are usually burned up in the atmosphere. Doing this on a very large scale could affect the chemistry of the upper atmosphere.

Some researchers are worried this could harm the ozone layer, though studies are still ongoing.