The Future Of Data Storage-Look Up

data center The Lonestar Data Holdings data center (black box) mounted on the IM-2 lander before launch. (credit: Lonestar Data Holdings) The future of data storage? Look up by Sebastien Jean Monday, August 18, 2025 In March of this year, the world’s first hardware data center landed successfully on the Moon. The size of a shoebox, that one small bit of hardware represented a giant leap for the future of data storage and processing in space. And it was no publicity stunt. It was proof that off-world data storage is technically possible. The idea of putting data centers in space might sound like science fiction, but the forces driving this shift are very real. That assurance couldn’t come at a better time. With global data volumes doubling every several years, Earth-based data centers are struggling to keep up. As energy consumption, land scarcity, and environmental concerns increase, many enterprises are beginning to look upwards. Why space, why now? Mounting pressures force data infrastructure shift The idea of putting data centers in space might sound like science fiction, but the forces driving this shift are very real. Artificial intelligence, cloud computing, and IoT technologies are fueling unprecedented demand for data processing and storage, which requires continual growth in the number of terrestrial data centers. In fact, McKinsey estimates global demand for data center capacity could almost triple by 2030, with AI capacity needs increasing 3.5 times and making up nearly three-fourths of the total. And finding suitable locations for new terrestrial data centers is getting harder due to a range of constraints. The limits of Earth-based data centers A 2024 EPRI study estimated that data centers could consume up to 9% of US electricity generation by 2030, more than double the amount currently used. With energy already a precious commodity, these facilities’ carbon footprints are too big. Terrestrial data centers strain power grids, eat up valuable real estate, and consume millions of gallons of water for cooling. On a warming planet with limited resources, this growth is unsustainable. National security and data resilience concerns The world’s data centers are vulnerable to natural disasters, wars, political shifts, cyberattacks, and even physical security breaches. Off-world storage could offer a new layer of disaster-proofing and cyber resilience. Copies of critical data stored on the Moon or in Earth orbit would remain intact. Space-based infrastructure could become the ultimate safeguard for governments, enterprises, and even humanity’s most important knowledge. Bottlenecks in space data processing While we rely heavily on satellites for Earth observation, most satellite-generated data must still be transmitted back to Earth for processing. This creates severe bandwidth bottlenecks. Microwave links are limited by government-controlled allocations of a finite frequency spectrum and laser links are limited by line of sight—meaning a cloudy day can disrupt transmissions. Potential benefits of data storage on or near the Moon Space-based data centers bypass many of Earth’s challenges: A secure, resilient alternative As global data demand surges and terrestrial data centers reach their limits, space is emerging as a compelling alternative for sustainable, secure digital infrastructure. Data centers and storage networks on or near the Moon don’t need water for cooling. They don’t consume limited energy resources, as solar power is ever-present. They don’t use valuable real estate or contribute to global warming. They’re less constrained by jurisdictional or sovereignty conflicts and less vulnerable to physical accidents or intentional attacks (than, say, undersea data transport cables.) For instance, a laser-linked data center in orbit could prevent such single points of failure. Ultra-low latency at the edge for real-time insights Processing data directly in orbit means raw data gathered via sensors can be stored and processed in space, then condensed into actionable insights sent to Earth. This is crucial for real-time applications such as Earth observation and disaster detection; national and space defense and awareness; IoT and autonomous systems coordination; and AI and machine learning models that depend on continuous data streams. The Moon as humanity’s backup drive The lunar surface offers a unique advantage: security through isolation. It’s a lot harder to hack or physically attack a data center on the Moon. It doesn’t face the same Earth-based disasters, physical sabotage, or accidental hardware mishaps. The Moon could be the ideal location for critical historical archives and other vital information that might be lost or destroyed if stored on Earth. New challenges must be overcome For all its promise and potential, space-based data storage and processing isn’t without serious hurdles. With every new venture that aims to solve existing challenges, new difficulties arise and need to be addressed. These include: Thermal management and radiation Managing heat in a vacuum is difficult. While space is cold, orbital data centers will still need a way to vent excess heat effectively. Hardware will also need to be able to withstand radiation. There are a couple of ways to mitigate radiation risks: using multi-material shielding, such as aluminum, tungsten, and tantalum in layers less than a millimeter thick; or use a storage device that has a high baseline level of radiation tolerance. High costs of launch and maintenance Though space launch investment amounts have adjusted in recent years, launching a single kilogram into space can still cost thousands of dollars. Hardware maintenance is also an issue. Repairing damaged systems remotely is difficult, even with robotics. Any infrastructure sent to the Moon or into orbit must be highly autonomous and durable. The Moon is just the beginning As global data demand surges and terrestrial data centers reach their limits, space is emerging as a compelling alternative for sustainable, secure digital infrastructure. Lunar and orbital data centers promise resilience, energy efficiency, and enhanced data sovereignty, and address many of the serious concerns plaguing Earth-based facilities. While the technology certainly faces steep challenges, many enthusiasts say the hurdles are more solvable than they might at first seem—and the momentum is undeniable. The Moon is destined to play a key role in the future of digital infrastructure, not only as a backup for Earth’s critical data but as a foundation for a growing lunar economy. The first lunar data center was just the beginning. Right now, nations and enterprises are researching, innovating, and planning to expand into space. In the near future, scientists expect that robots, research stations, and even early human colonies on the Moon will use and generate massive volumes of data and require robust digital infrastructure. Whether for Earth, for future Mars missions, or far beyond, one thing is clear: the future of data may be written in the stars. Sebastien Jean is chief technology officer of Phison, which partnered with Lonestar Data Holdings to fly a data center payload on the IM-2 lunar lander mission earlier this year.