Stock Markets February 6, 2026

Voyager CEO Flags Cooling as Major Barrier to Space-Based Data Centers

Company remains on course for 2029 Starlab launch but technical limits around heat removal make near-term deployment unlikely

By Derek Hwang
Voyager CEO Flags Cooling as Major Barrier to Space-Based Data Centers

Voyager Technologies CEO Dylan Taylor says space-based data centers are plausible long-term but cooling in vacuum presents a significant engineering constraint that makes a two-year timeline unrealistic. Voyager continues development of its Starlab replacement for the ISS with partners and plans for a 2029 launch, while interest in the sector grows amid recent corporate moves and policy focus.

Key Points

  • Thermal management in vacuum - heat must be radiated away and requires radiators oriented away from the Sun - is a central technical constraint for orbital data centers, affecting the engineering and design sector.
  • Voyager remains committed to its Starlab program with partners Palantir, Airbus, and Mitsubishi and is targeting a 2029 launch, which has implications for commercial space infrastructure and satellite services markets.
  • Sector interest has grown following Elon Musk citing space-based data centers as a motivation for the SpaceX and xAI combination and amid speculation about a potential SpaceX IPO and increased defense spending, impacting the broader space industry and defense-related markets.

Voyager Technologies' chief executive, Dylan Taylor, urged caution about rapid deployment of data centers in orbit, saying the idea faces a notable technical obstacle: getting rid of heat in the vacuum of space.

Speaking to CNBC, Taylor acknowledged that while computing infrastructure deployed in orbit could eventually become viable, a two-year timetable for operational systems would be "aggressive." He emphasized that the mechanics of cooling in space are fundamentally different from terrestrial systems.

"It's counter intuitive, but it's hard to actually cool things in space because there's no medium to transmit hot to cold," Taylor explained. "All heat dissipation has to happen via radiation, which means you need to have a radiator pointing away from the Sun."

The comment underscores the challenge of thermal management where the absence of air or another conductive medium forces designers to rely on radiative cooling and careful orientation relative to the Sun. Taylor also noted that, while companies such as SpaceX have the heavy-lift launch capability needed to place hardware in orbit, transporting components is only one piece of the engineering puzzle.

Voyager went public in June and is advancing the Starlab program, conceived as a private-sector successor to the International Space Station. The Starlab effort is being pursued in collaboration with Palantir, Airbus, and Mitsubishi, and Voyager maintains its target to launch in 2029.

Taylor cited existing in-orbit assets as evidence of the company’s foothold in space computing. Voyager already operates a cloud-compute device on the ISS and possesses laser communications equipment that could underpin future orbital data handling and transfer capabilities. "We're big believers in the technology maturing and our ability to generate data in space and process data in space," he said.

External interest in space-based computing has risen recently. The idea received renewed attention after Elon Musk, chief executive of Tesla, pointed to space-based data centers as among the rationales for combining SpaceX with xAI in a transaction described earlier this week as valued at $1.25 trillion. At the same time, speculation about a possible SpaceX initial public offering this year and the U.S. administration's emphasis on defense spending have contributed to heightened attention in the sector.

Despite the growing interest and launch capability, Taylor’s remarks underline that solving thermal engineering and other technical constraints will be essential before orbital data centers can move from concept to routine operation. Until those issues are resolved, aggressive deployment timelines should be treated with caution.


Summary

Dylan Taylor warns that heat dissipation in space - which must occur by radiation and requires radiators oriented away from the Sun - is a major hurdle for space-based data centers, making short timelines unrealistic. Voyager is progressing with its Starlab project and holds in-orbit computing hardware and laser comms tools, while sector interest rises amid corporate mergers and government spending focus.

Risks

  • Engineering risk: Effective heat dissipation in space is unresolved - thermal design limitations could delay or complicate deployment of orbital computing, impacting aerospace manufacturers and system integrators.
  • Timeline risk: A two-year deployment horizon is described as "aggressive," indicating near-term commercialization expectations may be unrealistic and could affect investor timelines in space infrastructure ventures.
  • Market and policy uncertainty: Continued market interest tied to corporate transactions and defense spending creates exposure to shifts in capital allocation and government priorities that could alter investment flows into the space sector.

More from Stock Markets

Jakarta Shares Finish Higher; IDX Composite Climbs 1.19% as Financials, Infrastructure and Agriculture Lead Feb 23, 2026 DAX Drops as U.S. Tariff Shift Rekindles Trade Uncertainty; STOXX Edges Lower Feb 23, 2026 European Markets Pull Back as Fresh U.S. Tariff Moves Undermine Risk Appetite Feb 23, 2026 Rolls-Royce Seeks UK Backing for £3 Billion UltraFan 30 Engine Programme Feb 23, 2026 Taiwan benchmark climbs to record as glass, plastics and cement groups lead gains Feb 23, 2026