Key facts
- European governments are investing in startups developing AI, clean tech, and advanced research.
- China is significantly ahead in developing orbital data centers.
- Europe faces a nearly $1 trillion investment gap in pioneering technologies.
- China's approach to space-based computing involves state-backed initiatives and industry collaboration.
- European projects like ASCEND aim to bolster digital sovereignty through space-based computing.
European nations are intensifying efforts to foster innovation in artificial intelligence, clean technology, and advanced research to compete with the technological advancements of China and the United States. Facing a significant investment gap, European governments are looking to back startups developing pioneering technologies.
China, in particular, is rapidly advancing in the development of orbital data centers, a critical infrastructure for processing the vast amounts of data generated by AI and satellite systems. A policy brief from the European Space Policy Institute (ESPI) warns that Europe risks falling behind and potentially having to rely on third-party actors for its space data processing, thereby losing access to vital orbital information and compromising digital sovereignty.
China's strategy for space-based computing is characterized by a strong top-down policy approach, integrating state-backed initiatives with private and state-owned industry adaptation, and supported by municipal and provincial government incentives. This has led to early implementation through prototype constellations, such as the Three-Body Constellation launched by startup ADAspace in May 2025, which demonstrated in-orbit computing power to control a ground robot. Several other Chinese companies, including Beijing Orbital Twilight Technology, Nayuta Space, and Shanghai Xingshu Tiansuan Space Technology, are also developing ambitious satellite constellations for computing purposes.
In response, Europe is undertaking its own initiatives. The EU-funded research project ASCEND, launched in 2023, aims to strengthen European digital sovereignty through orbital data centers. The European Space Agency (ESA) is also collaborating with UK firm Open Cosmos on the Φ-sat-2 satellite, which incorporates AI for Earth observation. French startup ALATYR is developing plans for robotically assembled orbital data centers. However, compared to the pace of developments in China and the U.S., the gap in Europe is widening.