In recent months, various space and satellite companies have filed applications with the Federal Communications Commission (FCC) seeking authorization to deploy satellites to operate as orbital data centers. Such applications display competitive efforts to address perceived limitations of terrestrial data centers.

These proposals come at an unprecedented moment in space regulation, as novel activities like orbital data centers emerge at the intersection of traditional telecommunications regulation and cutting-edge space technology. For the FCC, such activities raise important questions about the scope of the agency’s authority to regulate space-based activities that extend beyond more intensive, radio frequency-centric activities like telecommunications satellites. Such questions arise amidst a broader, multi-agency policy discussion about novel space activities, informed by an executive order tasking the Department of Commerce with evaluating regulatory approaches for novel space activities, as well as nearly a decade of congressional efforts to pass comprehensive commercial space legislation.

Why Orbital Data Centers?

As AI applications and use cases continue to grow, the need for data centers grows, too. Some industry players view space as the answer to a number of practical constraints with current terrestrial data center projects, namely water and energy consumption that strain local community resources and contribute to environmental and sustainability concerns. To address these limitations, data centers in space would, in theory, use clean solar energy for power, rely on the vacuum of space for cooling, and leverage reusable rockets for deployment. However, the industry has yet to prove orbital data centers’ feasibility, and many questions, including how data centers in space might contribute to orbital debris, remain.

The FCC’s Role

Currently, the FCC is undertaking an extensive rulemaking proceeding that proposes to overhaul its licensing rules, including by establishing a new rule part (Part 100) and further refining how it licenses and evaluates novel space activities. In the meantime, current applications must proceed under existing Part 25 rules and often require waivers. This process sometimes creates tension because the FCC often remains reluctant to regulate by waiver, even as companies require flexibility to move forward with their missions. This leaves applicants to face a strategic choice: file now under the current framework to potentially secure first-mover advantages, particularly for finite and congested spectrum resources, or wait for the agency to publish new rules to gain greater regulatory certainty about the process and requirements.

Regardless of timing, these early applications carry broader significance. Even filings submitted today face at least a year-long review, and the FCC has typically authorized complex applications in stages rather than all at once. The precedent the FCC sets now may serve as a roadmap for other companies considering orbital data centers and might shape how the government regulates future novel space activities. Meanwhile, questions persist about the FCC’s role relative to other agencies, the growing importance of national security considerations, and the optimal regulatory approach for commercial activities in space.

Conclusion

Data center operators and users interested in deploying data centers in space should stay apprised of how the FCC treats orbital data center applications, as well as the public record developed in response to these applications. As the FCC’s regulatory approach evolves into areas that some may view as beyond the scope of its traditional oversight authority, other federal agencies or Congress may become more actively involved in shaping or clarifying the applicable regulatory framework. Multiple regulatory bodies’ involvement — and the possibility of congressional action — may create opportunities for data center operators and users to help shape the policy landscape.