China’s Plan for Space-Based AI Data Centres | 09 Feb 2026

Why in News?

China has announced that it plans to launch space-based artificial intelligence data centres over the next five years as part of its advanced technological and space infrastructure strategy. 

Key Points: 

• Integrated Architecture: The plan aims to build a new space architecture that integrates cloud, edge, and terminal (device) capabilities. 
• Industrial-Scale "Space Cloud": By 2030, China intends to create an orbital "Space Cloud" powered by large-scale solar hubs, shifting energy-intensive AI processing from Earth to orbit. 
• Processing Power: The infrastructure will enable "deep integration of computing power, storage capacity, and transmission bandwidth," allowing data generated on Earth to be processed directly in space. 
• Domestic Milestones: In a significant proof-of-concept, Alibaba Cloud’s Qwen-3 model recently became the world's first general-purpose AI to successfully run inference in orbit on a test satellite.  
• China vs. SpaceX:The announcement positions China as the primary rival to SpaceX’s orbital ambitions. 
  • SpaceX, following its merger with AI firm xAI, is advancing plans for solar-powered orbital data centres and space computing satellites.  
• Associated Challenges: The massive increase in satellites for "Space Clouds" (potentially millions) significantly heightens the risk of collisions and complicates space traffic management. 
  • Technical Risks: Space-based hardware is highly vulnerable to solar flares, radiation, and micrometeorite impacts.