The plan to build virtual data centres in space just got $8 million backing

Virtual data centres in space have secured an additional $8 million in funding to help realize their ambitious vision. Satlyt, a Nairobi-based space technology startup founded in 2024, aims to process data and run artificial intelligence (AI) applications on satellites. The company's software enables satellites to utilize the onboard computing resources already present, transforming them into virtual AI data centres.

The recent seed funding round was led by non sibi ventures, with participation from a diverse group of investors, including TLCOM, Antler, Slauson & Co., Launch Africa Ventures, Enza Capital, Askya Investment Partners, Demos, BAG Collective, Gaingels, Axian Investment, and others. With this round of funding, Satlyt plans to bolster its engineering and customer delivery teams while deploying its software across more spacecraft operated by various companies.

Currently, Africa holds less than 1% of the global data centre capacity, totaling 360 megawatts of active capacity. To meet the growing digital demands and support AI training and deployment, the continent's hosting capacity is expected to double by 2030. Satlyt believes that leveraging the existing computing hardware in orbit can help address the shortage.

By running applications on existing spacecraft, satellite operators can optimize their computing resources and improve efficiency. The startup's founder and CEO, Rama Afullo, emphasizes that their software can be installed on various satellite designs and is designed to work across different missions. Satlyt's software has already been deployed on satellites used by NASA and Google.

In one example, their Gemma AI model analyzed a spacecraft's system logs and identified software errors without requiring data to be sent back to Earth. Satlyt's long-term goal is to enable collaboration among spacecraft from different operators, creating a shared network that can contribute computing power. The company is currently working on delay-tolerant networking technology through NASA's Small Business Technology Transfer (STTR) program, in collaboration with the University of Houston.

Satlyt's revenue streams include installations on third-party spacecraft, paid pilots with aerospace and defense contractors, and research and development programs supported by space agencies. Although Satlyt does not build the computing hardware itself, it aims to enhance the utilization of existing resources, providing value to satellite operators and application developers alike.