Why low earth orbit is attracting billions in investment
Europe’s Ariane 6 rocket takes off over Kourou, French Guiana, on July 9, 2024. European Space Agency
ESA | via Reuters
A new layer of critical infrastructure is emerging above our heads.
Low Earth Orbit (LEO) — NASA defines it as an extension of space over a certain distance Altitude 2,000 km or less — is rapidly evolving from a niche technical field to one of the most strategically important environments of the 21st century.
It supports global navigation, telecommunications, defense and worldwide connectivity and is witnessing a flood of investment.
LEO satellites enable faster responses, lower launch costs, and faster communication speeds due to their relative proximity to Earth. Unlike satellites in higher orbits, they do not remain above a fixed point on Earth and often operate in constellations to maximize global coverage.
Higher orbits, such as Medium Earth Orbit (MEO) and Geostationary Orbit (GEO), host well-established satellite infrastructure, but are subject to stricter operational constraints.
According to Space IQ, a report that tracks startup activity and investment trends in the space economy, investment in the sector has increased from just under $25 billion in 2024 to more than $45 billion in 2025.
“Orbital access is becoming a strategic asset, like ports, cables or power grids on Earth,” Carlos Moreira, CEO of Swiss cybersecurity and semiconductor firm Wisekey, told CNBC.
The most visible example of this change is Elon Musk’s rapidly expanding satellite network. Rocket company SpaceX already operates the Starlink constellation, which currently flies more than 9,500 satellites.
The company plans to expand this network by adding thousands more satellites. SpaceX has also proposed a larger project, a solar-powered orbital data center system that could eventually include up to a million satellites.
But SpaceX is not alone. Just this week tech darling Nvidia It has unveiled a new platform that aims to bring AI computing to orbit. The system is designed to support orbital data centers, geospatial intelligence, and autonomous space operations.
“Space computing, the final frontier has arrived,” Nvidia CEO Jensen Huang said at the company’s 2026 GTC conference in San Jose. This approach could turn orbital data centers into rovers and spacecraft into self-navigating systems, he said.
Amazon LEO, formerly known as Project Kuiper, plans to place more than 3,000 satellites in Low Earth Orbit. Earlier this year, the Federal Communications Commission (FCC) approved the approval of an additional 4,500 satellites for future deployment. Meanwhile, Blue Origin, founded by Jeff Bezos, is expected to launch more than 5,000 satellites by the end of 2027.
in Europe, EutelsatThe OneWeb LEO satellite network currently consists of more than 600 satellites. France, which currently operates on a much smaller scale, hopes the company will eventually rival Musk’s Starlink and has committed to investing 1.35 billion euros ($1.58 billion) in Eutelsat, becoming the company’s largest shareholder with a nearly 30% stake.
China has also made plans for more than 200,000 satellites in 14 constellations.
The scale of these planned deployments represents a fundamental shift in how space will be used, managed and commercialized.
A new investment moment
According to Space Capital, more than $400 billion has been invested in the space economy since 2009; More than half of this investment is contributed by the USA, followed by China.
Space Capital CEO Chad Anderson said the industry remains in the “early stages of a multi-decade infrastructure cycle.” He noted that although the industry is still in the early stages of evolution, it is mature enough to offer meaningful public market opportunities.
About a dozen space companies are already publicly traded, with more expected to follow in the next year; This includes the highly anticipated SpaceX IPO, a pivotal event that Anderson said could mark the space industry’s “Netscape moment” and that is reshaping investor expectations and drawing more capital to the market.
But as momentum builds and commercial activity accelerates, Wisekey’s Moreira warned that this expansion must be “managed with the same level of seriousness as digital sovereignty over the Earth.”
He argued that space should remain a domain that benefits humanity—supporting connectivity, scientific discovery, and economic growth—rather than becoming a place of uncontrolled competition and systemic risk.
Regulatory risks
Leo’s fragmented management and multi-layered operating system is one of the key challenges to market growth.
At the international level, the Outer Space Treaty establishes that states are responsible for all space activities carried out under their jurisdiction, while the UN’s space debris reduction guidelines provide non-binding sustainability principles.
The International Telecommunications Union (ITU) helps prevent interference and maintain reliable operation in communications networks by managing global spectrum allocation. In addition to these formal mechanisms, industry groups such as the Space Safety Coalition also support voluntary best practice standards.
National authorities then provide operational oversight. In the United States, for example, the FCC licenses satellite constellations and spectrum use, and the FAA oversees launch and reentry activities.
However, many experts argue that existing frameworks are no longer fit for purpose.
Much of today’s legal structure is designed around GEO’s more predictable terms, says TMT attorney Raza Rizvi at Simmons & Simmons. “As we now enter a higher-risk, more complex environment in LEO, we do not yet have specific legal tools to govern this new technology.”
Siamak Hesar, CEO of spaceflight intelligence company Kayhan Space, says current regulations are made for slower-paced, government-driven space programs and that “Regulations need to evolve at the scale the industry grows.”
He notes that regulation now needs a “fresh perspective” as the primary users of the space become commercial operators, not governments.
The shift from government-focused activity to commercial-focused activity is also reshaping how industry leaders view the opportunities ahead. Martijn Rogier van Delden, Consumer Manager for Amazon LEO Europe, sees a “tremendous opportunity” for LEO satellites to connect billions of people, describing it as “a game changer that will close the digital divide.”
