French startup aims to build orbital data centers

A French startup called Alatyr plans to construct data centers in space, offering an alternative to traditional data centers on Earth and challenging American companies like SpaceX and Blue Origin. The company shifted its focus to space-based data centers at the end of 2025.

Market potential for orbital data centers

According to Emeric Lhomme, co-founder of Alatyr, the market for orbital data centers could reach 15% of the total AI-dedicated data center market by 2040, valued at around 320 billion dollars annually. This projection comes from a report by Boston Consulting Group from last July.

Modular design for space data centers

Alatyr’s plan involves assembling 551 lightweight and thin tiles in space using heavy launchers. These tiles will be equipped with solar panels, cooling radiators, and computer chips. A robot named BYLD will then assemble them into a data center measuring 240 meters by 90 meters.

Timeline for orbital data center development

The startup aims to conduct an orbital test by the end of 2028 and complete the first 4 megawatt orbital data center, called Citadel, by 2030. Long-term goals include scaling up to a gigawatt of power by 2040, which could support both AI training and real-time user requests.

Focus on resilience and sovereignty

Alatyr plans to launch a beta version of its cloud service by 2027 or 2028 to test with future customers. The first operational orbital data centers will prioritize critical sectors like military, security, and essential services. The startup highlights the advantage of operating under French and European regulations, independent of any single country.

Partnerships and international adaptability

Alatyr has partnered with cloud operators like Illiad and European GPU manufacturers such as SiPearl. The model can be adapted for use in countries unable to build their own data centers, such as Singapore, where a local company could manage the infrastructure for the government.

Funding and European ambitions

The startup needs funding for technological development before moving to industrial production. It is preparing a new fundraising round, with Emeric Lhomme estimating that venture capital can cover the initial phase. The project aims to attract French or European investors, driven by the goal of reducing reliance on American tech giants.