Orbital AI Data Centers and the Space Computing Revolution: Identifying Undervalued Enablers in the Orbital Infrastructure Supply Chain

The space computing revolution is accelerating, driven by the convergence of artificial intelligence (AI), orbital infrastructure, and the urgent need for sustainable, scalable data processing solutions. As terrestrial data centers grapple with power, real estate, and networking bottlenecks, the industry is pivoting to orbit-where solar energy is abundant, cooling requirements are minimal, and latency is reduced. This shift is creating a new frontier for investment, with undervalued enablers in the orbital infrastructure supply chain poised to play pivotal roles.

The Rise of Orbital AI Data Centers

The demand for AI infrastructure is surging, with global spending projected to reach $5.2–$7.9 trillion between 2025 and 2030. Traditional data centers, constrained by power demands (up to 600 kW/rack for AI clusters) and cooling challenges, are being outpaced by orbital alternatives. Companies like SpaceX and Blue Origin are pioneering modular platforms for satellite assembly and in-orbit servicing, while hyperscalers such as Microsoft and Meta are securing long-term partnerships to access orbital capacity. The in-orbit data centers market itself is expected to grow at a CAGR of 67.4%, reaching $39.09 billion by 2035.

Undervalued Enablers: Networking and Energy

Arista Networks (ANET) is a critical enabler in this ecosystem. Its Etherlink AI platform, designed to handle high internal network traffic in AI data centers, has become indispensable for hyperscalers like Meta and Oracle. Despite a 28% year-over-year revenue increase in Q3 2025 and a projected 19% growth in Q4, Arista's stock trades at a P/E ratio of 55-higher than the tech sector average of 39 times. Analysts argue this reflects investor caution rather than intrinsic weakness, with a calculated fair value of $164.08 compared to its current price of ~$125.

Energy is another bottleneck. Constellation Energy has secured long-term agreements with Microsoft to supply carbon-free power for AI operations, underscoring the growing importance of sustainable energy in orbital infrastructure. Meanwhile, SpaceX is leveraging its Starlink constellation to integrate AI computing payloads, with its valuation potentially soaring to $800 billion as it expands into orbital data centers.

In-Space Manufacturing and Sustainability

The orbital supply chain's next frontier lies in in-space manufacturing and sustainability. Honeybee Robotics and Orbit Fab are pioneering technologies for fuel transfer and in-space logistics, ensuring sustained satellite operations. Orbit Fab, for instance, became the first company to offer refueling services in geostationary orbit (GEO) in 2025, supporting the U.S. Space Force and debris removal efforts. These companies are critical for extending satellite lifespans and addressing a $1.976 billion market by 2032.

Astroscale Holdings Inc. is another undervalued player. Despite a net loss of $14.18 billion in the trailing twelve months and a stock price of $4.65 (as of July 2025), Astroscale's global expansion and partnerships with NASA and the European Space Agency (ESA) position it as a leader in debris removal and on-orbit servicing. Its ELSA-M and LEXI missions aim to commercialize satellite repair and refueling, addressing a $21.33 billion market by 2029.

The Circular Economy and Institutional Capital

The circular economy is gaining traction as a solution to the environmental challenges of space expansion. Only 7% of used materials are currently recycled, but circular business models could reduce carbon emissions by up to 45%. Institutional investors are increasingly allocating capital to mid-market infrastructure projects, including renewable energy and circular economy initiatives. This trend aligns with the U.S. Department of Defense's Golden Dome initiative and growing interest in lunar infrastructure, which will require robust supply chains for in-space manufacturing.

Risks and Opportunities

While the orbital infrastructure sector is promising, it is not without risks. High capital requirements, regulatory complexities, and supply chain vulnerabilities pose challenges. However, companies that innovate in modular refueling depots, autonomous docking systems, and sustainable manufacturing are likely to outperform. For instance, Relativity Space is reducing launch costs through in-orbit manufacturing, while Varda Space Industries is demonstrating the feasibility of space-based pharmaceutical production.

Conclusion

The space computing revolution is reshaping the AI infrastructure landscape, with orbital data centers offering a scalable, sustainable alternative to terrestrial systems. Undervalued enablers like Arista Networks, Astroscale, and Orbit Fab are critical to this transition, addressing bottlenecks in networking, energy, and sustainability. As the in-orbit data centers market grows at a 67.4% CAGR, investors who identify these enablers early stand to benefit from a sector poised for exponential growth.