Houston, We Have A Data Boom: The Rise Of Lunar Data Centres
Houston, We Have A Data Boom: The Rise Of Lunar Data Centres
In February 2025, Lonestar Data Holdings's ‘Freedom’ data centre is set to land on the Moon as part of Intuitive Machines's IM-2 mission, marking the first commercial lunar data storage experiment. A decade ago, this seemed like science fiction – today, it’s rapidly becoming reality. Organizations like Lonestar Data Holdings, alongside launch providers such as SpaceX and Flexential, are leading the charge to build off-world data centres, transforming both technology and real estate investment.
The space race for digital storage
By 2030, the global data centre market is projected to reach $437.33 billion, growing at a 10.9% CAGR. Increasing demand has drawn investors from across the spectrum – growth capital, buyout firms, real estate funds and, increasingly, infrastructure investors.
In the US market, data centre power demand will rise from 17GW in 2022 to 35GW by 2030, according to McKinsey analysis. As AI, cloud computing and data generation surge, traditional data centre supply is struggling to keep up. These innovations are energy-intensive, heavily reliant on aging infrastructure, and require massive cooling efforts.
Earth’s overloaded grid: a lunar alternative?
To meet demand, data centres on Earth are undergoing sustainability overhauls: adopting renewable energy, energy-efficient chipsets and innovative cooling methods (see Verdantix Future Of Data Centres (North America)). With these efforts, investment in this asset class is continuing. Could the next breakthrough come from beyond Earth’s atmosphere?
Lunar data centres, powered by solar energy and benefitting from specific cooling advantages, could offer a sustainable alternative, easing pressure on terrestrial grids while opening a new frontier in digital storage.
Why the Moon?
The key advantages of lunar data centres span:
- Abundant solar power – The Moon receives near-constant sunlight, making it an ideal location for solar-powered data centres.
- Potential cooling benefits – Certain lunar regions, such as permanently shadowed craters, offer naturally low temperatures, potentially reducing cooling requirements for data centres.
- Cyber security resilience – Storing critical data off-world could reduce exposure to conventional cyber threats, though secure data transmission back to Earth remains a consideration.
Investing in space: the real estate boom beyond Earth
This isn’t just a technological leap – it’s an investment opportunity. Here’s how investors could capitalize:
- Early adopters could secure access to lunar-based data infrastructure that appreciates in value as demand for space-based storage grows.
- By investing in land near spaceports in locations such as Florida, California, Virginia, New Mexico and Alaska, which are likely to appreciate in value as demand for launch infrastructure increases.
- By revising investment strategy in legacy data centres that may need to adapt to changing industry dynamics. For example, traditional data hubs such as those in Virginia, Singapore and Ireland may see a shift toward hybrid data storage models, integrating terrestrial and off-world solutions. Investing in emerging space-oriented REITs and funds offers exposure to lunar and orbital data centres. Lumen Orbit, for example, has already raised $11 million for orbital data centres, signalling strong investor interest.
Navigating the challenges of lunar data centres
While the opportunity is vast, challenges remain:
- High costs – Space infrastructure remains expensive, though advancements in reusable rockets and autonomous construction could drive costs down.
- Solar radiation risks – The 2025 solar maximum is expected to increase solar activity, exposing lunar surfaces to heightened levels of solar winds and radiation. This could impact electronic components and data integrity, requiring advanced shielding and redundancy systems. Additionally, geomagnetic storms on Earth may disrupt wave communication, potentially impacting data transmission between lunar facilities and Earth-based networks.
- Regulatory uncertainty – The 1967 Outer Space Treaty prohibits nations from claiming ownership of celestial bodies. However, private firms operating in space exist in a legal grey area. The Artemis Accords attempt to address property rights in space, but much remains uncertain. Investors should watch regulatory developments closely.
Despite these challenges, real-world tests are proving the viability of space-based data centres. As this new frontier develops, investors have the opportunity to secure a stake in the next phase of real estate: beyond Earth.
