Europe wants to send data centers into space — study says it’s possible
A data center.
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The rise of artificial intelligence is skyrocketing demand for data centers to keep pace with the growing tech sector — and pushing Europe to explore space options for digital storage, in a bid to reduce its need for energy-hungry facilities on the ground.
Advanced Space Cloud for European Net zero emission and Data sovereignty, a 16-month long study that explored the feasibility of launching data centers into orbit, has come to a “very encouraging” conclusion, according to Damien Dumestier, manager of the project.
The 2 million-euro ($2.1 million) ASCEND study, coordinated by Thales Alenia Space on behalf of the European Commission, claims that space-based data centers are technically, economically and environmentally feasible.
“The idea [is] to take off part of the energy demand for data centers and to send them in space in order to benefit from infinite energy, which is solar energy,” Dumestier told CNBC.
‘Data tsunami’
Data centers are essential for keeping pace with digitalization, but also require significant amounts of electricity and water to power and cool their servers. The total global electricity consumption from data centers could reach more than 1,000 terrawatt-hours in 2026 —that’s roughly equivalent to the electricity consumption of Japan, according to the International Energy Agency.
The industry is about to be hit with a “wave of data tsunami,” said Merima Dzanic, head of strategy and operations at the Danish Data Center Industry Association.
“AI data centers need something like three times more energy than a traditional data center and that is a problem not just on the energy side, but also the consumption side,” she told CNBC.
A “whole different approach to how we build, design and operate data centers,” is required, Dzanic added.
The facilities that the study explored launching into space would orbit at an altitude of around 1,400 kilometers (869.9 miles) — around three times the altitude of the International Space Station. Dumestier explained that ASCEND would aim to deploy 13 space data centre building blocks with a total capacity of 10 megawatts in 2036, in order to achieve the starting point for cloud service commercialization.
Each building block — with a surface area of 6,300 square meters — includes capacity for its own data center service and is launched within one space vehicle, he said.
In order to have a significant impact on the digital sector’s energy consumption, the objective is to deploy 1,300 building blocks by 2050 to achieve 1 gigawatt, according to Dumestier.
Eco launch
ASCEND’s goal was to explore the potential and comparative environmental impact of space-based data centers to aid Europe in becoming carbon-neutral by 2050.
The study found that, in order to significantly reduce CO2 emissions, a new type of launcher that is 10 times less emissive would need to be developed. ArianeGroup, one of the 12 companies participating in the study, is working to speed up the development of such reusable and eco-friendly launchers.
The target is to have the first eco-launcher ready by 2035 and then to allow for 15 years of deployment in order to have the huge capacity required to make the project feasible, said Dumestier.
Yet Dzanic warned the somewhat “fringe” idea of space-based data centers doesn’t fully solve the issue of sustainable energy usage. “It’s just one part of the puzzle,” she said.
Michael Winterson, managing director of the European Data Centre Association, acknowledges that a space data center would benefit from increased efficiency from solar power without the interruption of weather patterns — but the center would require significant amounts of rocket fuel to keep it in orbit.
Data centers are projected to account for more than 3% of Europe’s electricity demand by 2030.
Andrey Semenov | Istock | Getty Images
Winterson estimates that even a small 1 megawatt center in low earth orbit would need around 280,000 kilograms of rocket fuel per year at a cost of around $140 million in 2030 — a calculation based on a significant decrease in launch costs, which has yet to take place.
“There will be specialist services that will be suited to this idea, but it will in no way be a market replacement,” said Winterson.
“Applications that might be well served would be very specific, such as military/surveillance, broadcasting, telecommunications and financial trading services. All other services would not competitively run from space,” he added in emailed comments.
Dzanic also signaled some skepticism around security risks, noting, “Space is being increasingly politicised and weaponized amongst the different countries. So obviously, there is a security implications on what type of data you send out there.”
World leader
ASCEND isn’t the only study looking into the potential for orbital data centers. Microsoft, which has previously trialed the use of a subsea data center that was positioned 117 feet deep on the seafloor, is collaborating with companies such as Loft Orbital to explore the challenges in executing AI and computing in space. Its work is crucial for innovation and to “lay the groundwork for future data management solutions in space,” a Microsoft spokesperson told CNBC.
ASCEND is one way through which the EU seeks to gain a competitive advantage within the AI ecosystem, where the bloc is currently lagging behind the U.S. and China, Dzanic said.
The EU is only now “starting to wake up and smell the coffee and go in with funding these projects,” she added.
The ASCEND researchers are in talks with the International Space Agency for the next phase which includes consolidating all of the data they have gathered and work on the development of a heavy lift launcher.
“We want to ensure data sovereignty for Europe, but this kind of project can benefit other countries,” said Dumestier. “We are pushing a lot because we can tell that it is a promising project. It could be a flagship for the Europe space development.”
Twitter CEO Jack Dorsey testifies during a remote video hearing held by subcommittees of the U.S. House of Representatives Energy and Commerce Committee on “Social Media’s Role in Promoting Extremism and Misinformation” in Washington, U.S., March 25, 2021.
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Block jumped more than 5% on Monday, leading a rally in shares of fintech companies as analysts downplayed the threat of JPMorgan Chase’s reported plan to charge data aggregators for access to customer financial information.
The recovery followed steep declines on Friday, after Bloomberg reported that JPMorgan had circulated pricing sheets outlining potential fees for aggregators like Plaid and Yodlee, which connect fintech platforms to users’ bank data.
In a note to clients on Monday, Evercore ISI analysts said the potential new expenses were “far from a ‘business model-breaking’ cost increase.”
In addition to Block’s rise, PayPal climbed 3.5% on Monday after sliding Friday. Robinhood and Shift4 recorded modest gains.
Broader market momentum helped fuel some of the rebound. The Nasdaq closed at a record, and crypto rallied, with bitcoin climbing past $123,000. Ether, solana, and other altcoins also gained.
Evercore ISI’s analysts said that even if JPMorgan’s changes were implemented, the most immediate effect would be a slight bump in the cost of one-time account setups — perhaps 50 to 60 cents.
Morgan Stanley echoed that view, writing that any impact would be “negligible,” especially for large fintechs that rely more on debit, credit, or stored balances than bank account pulls for transactions.
PayPal doesn’t anticipate much short-term impact, according to a person with knowledge of the issue. The person, who asked not to be named in order to speak about private financial matters, noted that PayPal relies on aggregators primarily for account verification and already has long-term pricing contracts in place.
While smaller fintechs that depend heavily on automated clearing house (ACH) rails or Open Banking frameworks for onboarding and compliance may face real pressure if the fees take effect, analysts said the larger platforms are largely insulated.
WATCH: Congress moves to redraw $3.7 trillion crypto market rules, opening door to Wall Street
The global EV market is still charging ahead. According to new numbers from global research firm Rho Motion, 9.1 million EVs were sold worldwide in the first half of 2025, up 28% compared to the same period last year. But not every region is accelerating at the same pace.
China and Europe are doing the heavy lifting
More than half of the world’s EVs this year have been bought in China. That market hit 5.5 million sales in the first six months of 2025 – a 32% jump year-over-year. Around half of new cars bought in China are now electric.
While some Chinese cities’ subsidies have dried up, Rho Motion expects momentum to pick back up later in the year as more funding is released.
In Europe, 2 million EVs were sold in the first half of the year, up 26%. Battery electric vehicle (BEV) sales also rose 26%, thanks in part to affordable models like the Renault 4 (pictured) and 5 entering the market. Plug-in hybrids (PHEVs) weren’t far behind, growing 27% year-to-date. Chinese automakers are leaning into PHEVs as a way to work around the EU’s new tariffs on BEVs.
Spain is leading the pack with EV sales soaring 85% so far this year. Its generous MOVES III incentive program was extended in April and has kept sales strong. The UK and Germany are also seeing solid growth – 32% and 40%, respectively. France, however, is slumping. With subsidies cut, EV sales there have dropped 13%.
North America is stuck in the slow lane
Things aren’t looking quite as bright in North America. EV sales in the US, Canada, and Mexico are up just 3% so far this year.
Mexico is the one bright spot, with a 20% boost. The US is up 6%. But Canada is down a whopping 23%.
And things could get bumpier. On July 4, Trump signed Congress’s big bill into law, which axes all the Inflation Reduction Act EV tax credits. Those consumer credits for EVs now officially end on September 30.
Just over half of the EVs sold in the US this year qualified for those credits. Rho Motion predicts a rush in Q3 before the subsidies disappear – and a decline in sales after that.
Rho Motion data manager Charles Lester said, “With Trump’s latest cuts in his ‘Big Beautiful Bill,’ the US could struggle to see any growth in the EV market overall in 2025.”
Global EV sales snapshot, H1 2025 vs H1 2024
- Global: 9.1 million (+28%)
- China: 5.5 million (+32%)
- Europe: 2.0 million (+26%)
- North America: 0.9 million (+3%)
- Rest of world: 0.7 million (+40%)
Read more: China breaks records as global EV sales hit 7.2 million in 2025
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Lucid’s electric sedan can drive further, charge faster, and packs more advanced tech than most of the competition. That might explain why it’s leading the segment. The Lucid Air remained the best-selling luxury EV sedan in the US after widening its lead in the Q2.
The Lucid Air is America’s best-selling luxury EV sedan
The 2025 Lucid Air Pure arrived as the “World’s most efficient car” with an EPA-estimated range of 420 miles and a record 146 MPGe.
It just set a new Guinness World Record last week for the longest journey by an electric car after travelling 749 miles (1,205 km) on a single charge.
That record was set in the range-topping Lucid Air Grand Touring model, which is rated for up to 512 miles of EPA-estimated range. On the WLTP scale, it’s rated at 597 miles (960 km). Either way, it still crushed the estimates.
According to second-quarter sales data, released by Kelley Blue Book on Monday, the Lucid Air is still America’s best-selling luxury EV.
Lucid sold 2,630 Air models in Q2, up 10% from the previous year. Through the first half of 2025, Lucid Air sales are up 17% with 5,094 units sold.
Tesla, on the other hand, only sold 1,435 Model Ss during the quarter, 71% fewer than it did in Q2 2024. Tesla Model S sales in the US are down 70% through the first half of the year at 2,715.
Although Porsche Taycan sales were up 32% with 1,064 models sold, the significantly upgraded 2025 model year was expected to see even more demand. Porsche has 2,083 Taycans in the US this year, up just 1% from 2024.
Other luxury EV sedans, such as the BMW i5 (1,434), i7 (820), and the Mercedes EQS (498), experienced steep double-digit sales declines year-over-year.
And it’s not just electric luxury sedans. The Lucid Air is currently outselling many gas-powered vehicles in its segment.
Lucid’s first electric SUV, the Gravity, is also rolling out. Although only five were sold in the second quarter, Lucid is quickly scaling production. Lucid aims to produce 20,000 vehicles this year, more than double the roughly 9,000 it built in 2024.
Earlier today, Lucid’s interim CEO, Marc Winterhoff, confirmed during an interview with Bloomberg that the company expects higher Gravity output in the second half of the year.
The interview was at the grand opening of Panasonic’s new battery cell plant in De Soto, Kansas. Winterhoff said Lucid will start using new cells from the facility, but not until next year.
Lucid’s CEO stressed the importance of establishing a local supply chain, as policy changes under the Trump Administration are taking effect. Lucid and Panasonic are collaborating to localize EV materials, such as graphite. Last month, Lucid secured a multi-year supply agreement with Graphite One for US-sourced Graphite.
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