Europe's orbital compute gap is widening, and the continent risks becoming dependent on foreign infrastructure, according to a recent report by the European Space Policy Institute (ESPI). The report highlights China's rapid progress in space-based data centers, driven by national policy, municipal initiatives, and state-owned enterprise backing. This contrasts with Europe's focus on research and small-scale technology demonstrations, which has yet to translate into large-scale deployment strategies.
China's Three-Body Constellation, launched by ADA Space in 2025, marked the first operational example of space-based computing. The country has since accelerated its efforts, with startups like ADAspace and support from institutions like Zhejiang Lab. China Mobile, Comospace, Bailing Aerospace, Orbital Chenguang, and Shanghai Xingshu Tiansuan Space Technology Co. are also pursuing orbital computing, with some already deploying satellite networks.
The Chinese government's top-down approach to orbital computing is in stark contrast to the U.S.'s commercially driven activity. While the U.S. is attracting significant funding for ODC ventures, Europe has yet to organize its efforts around a large-scale deployment strategy. The report warns that if Europe doesn't pay close attention, it risks relinquishing space compute capabilities to the U.S. and China.
The report recommends that the European Union recognize ODCs as an emerging pillar of technological sovereignty and coordinate policy, investment, and regulation around their development. This includes establishing a flagship European ODC initiative, acting as early customers for in-space data processing services, and setting up a 'European ODC Challenge' to support startups. Europe can also learn from China's approach by combining policy drafting with industry implementation.
The report concludes by emphasizing the urgency of the situation, urging European actors to heed the warnings and take action to ensure their technological sovereignty in the space compute arena.
