Why low earth orbit is attracting billions in investment

A new layer of critical infrastructure is emerging above our heads. 

Low Earth Orbit (LEO) — which NASA defines as the stretch of space at an altitude of 2,000 km or less — is rapidly evolving from a niche technical domain into one of the most strategically important environments of the 21st century.

It underpins global navigation, telecommunications, defense and worldwide connectivity and is seeing a flood of investment.

LEO satellites, with their relative proximity to Earth, deliver quicker responses, reduced launch costs and faster communication speeds. Unlike satellites in more elevated orbits, they do not stay above a fixed spot on Earth and often work in constellations to maximize global coverage. 

Higher trajectories, such as Medium Earth Orbit (MEO) and Geostationary Orbit (GEO), host long‑established satellite infrastructure, but they are subject to more rigid operational constraints.

More than $45 billion worth of investment in the sector was recorded in 2025, up sharply from just under $25 billion in 2024, according to Space IQ, a report tracking startup activity and investment trends in the space economy.

“Orbital access is becoming a strategic asset much like ports, cables, or energy grids on Earth,” Carlos Moreira, CEO of Swiss cybersecurity and semiconductor firm Wisekey, told CNBC.

The most visible example of this shift is Elon Musk‘s rapidly expanding satellite network. His rocket company, SpaceX, already operates the Starlink constellation, which currently has more than 9,500 satellites flying.

The company plans to expand this network by adding thousands more satellites. SpaceX has also proposed an even larger project, a solar-powered orbital data-center system, that could eventually involve up to one million satellites. 

But SpaceX is not alone. Just this week tech darling Nvidia unveiled a new platform aimed at bringing AI computing into orbit. The system is designed to support orbital data centers, geospatial intelligence and autonomous space operations. 

“Space computing, the final frontier, has arrived,” said Nvidia CEO Jensen Huang at the company’s GTC conference 2026 in San Jose. This approach could transform orbital data centers into instruments of discovery and spacecraft into self-navigating systems, he said.

Amazon LEO — formerly known as Project Kuiper — plans to deploy more than 3,000 satellites into Low Earth Orbit. Earlier this year, the Federal Communications Commission (FCC) approved a further 4,500 satellites for future deployment. Meanwhile, Blue Origin, founded by Jeff Bezos, is expected to launch more than 5,000 satellites by late 2027. 

In Europe, Eutelsat‘s OneWeb LEO satellite network currently consists of more than 600 satellites. While currently operating on a much smaller scale, France is hoping the company will eventually rival Musk’s…