SES's O3b mPOWER: A Satellite Constellation Poised to Dominate the Future of Global Connectivity

The launch of SES's seventh and eighth O3b mPOWER satellites in December 2024 marked a critical milestone in the company's mission to redefine global connectivity. By resolving technical challenges from earlier iterations and entering medium Earth orbit (MEO) by April 2025, these satellites have already begun expanding the O3b mPOWER network's capacity. With a full constellation of 13 satellites planned for completion by 2027, SES is strategically positioned to capitalize on surging demand for high-throughput, low-latency connectivity in underserved markets. This article explores why the constellation's expansion—bolstered by ground infrastructure partnerships and upcoming launches—makes SES a compelling investment opportunity for long-term growth.

Redesigned Satellites and the Race to 3x Capacity by 2027

The seventh and eighth O3b mPOWER satellites, redesigned with enhanced power modules, have resolved earlier technical constraints, ensuring reliability and longevity. By mid-2025, SES will deploy its ninth and tenth satellites, with launches continuing through 2026. These additions will enable the network to achieve a threefold capacity increase by 2027, outpacing competitors in delivering gigabit-scale speeds to remote regions. The constellation's MEO architecture—a sweet spot between low Earth orbit (LEO) and geostationary orbit (GEO)—offers a unique blend of coverage, latency, and scalability.

Investors have already begun pricing in this potential: SESG has risen 28% since late 2022, reflecting confidence in its technical execution and growth trajectory.

Ground Infrastructure and Azure Partnerships: The Key to Low-Latency Dominance

SES's satellites are only half the equation. The company has built 12 operational gateways, including five co-located with Microsoft's Azure data centers. This integration enables near-real-time data processing, reducing latency and creating a seamless bridge between space-based connectivity and cloud infrastructure. For industries like maritime shipping, aviation, and government operations, this hybrid model is a game-changer.

Azure's rapid expansion—from $13 billion to $80 billion in revenue over five years—underscores the strategic value of SES's partnerships. By 2027, the O3b mPOWER network will serve as a critical backbone for cloud providers, enterprises, and governments seeking reliable, high-speed connectivity in regions where fiber optics are unavailable or cost-prohibitive.

First-Mover Advantages in Underserved Markets

SES is already securing contracts in high-margin sectors. In mobility, it powers over 300 cruise ships and oil rigs with its existing constellation, and the mPOWER expansion will double its capacity for maritime and aviation markets. In government, the U.S. Air Force recently selected SES for a $2.4 billion contract to provide secure satellite communications—a testament to the network's resilience and scalability. Meanwhile, cloud giants like Microsoft are leaning on SES to extend their reach into remote data centers.

The company's first-mover advantage is clear: by 2027, it will be the only provider with a MEO constellation of this scale, combining low latency with global coverage. Competitors like OneWeb and Starlink face challenges in cost and latency, while SES's hybrid ground-satellite model offers unmatched flexibility.

Upcoming Catalysts for Rapid Growth

The summer 2025 launch of the ninth and tenth satellites will further solidify SES's capacity lead. By mid-decade, the constellation will support tens of gigabits per second for enterprise customers, far outpacing legacy GEO systems. Additionally, SES is negotiating long-term contracts with telecom operators in Africa and Latin America, where over 3 billion people still lack reliable broadband.

Analysts project a 12% CAGR for the satellite sector through 2030, driven by 5G backhaul, IoT, and cloud offloading—markets where O3b mPOWER's low latency and scalability are unmatched.

Risks and the Case for Immediate Action

Risks remain, including delays in launch schedules or overcapacity in certain markets. However, SES's technical progress and contractual backlog—secured before the constellation's full deployment—mitigate these concerns. With a $5.2 billion market cap and a track record of executing multi-satellite launches, SES is financially and technically equipped to capitalize on its vision.

For investors seeking exposure to the $1.3 trillion global connectivity market, SESG offers a rare combination of strategic positioning, proven execution, and scalable growth. The next 18 months will see the constellation's capacity double, triggering a revenue inflection point. This is not just an investment in satellites—it's a bet on the infrastructure enabling the next wave of digital transformation.

Conclusion: SESG as a Long-Term Growth Engine

SES's O3b mPOWER constellation is more than a technical marvel—it's a strategic juggernaut. By 2027, it will dominate high-margin markets with unmatched capacity and reliability, supported by partnerships that turn data into dollars. With launches accelerating in 2025 and contracts flowing in, the time to invest is now. SESG is primed to deliver outsized returns as the world's connectivity needs expand into the stratosphere—and beyond.