Space, Semiconductors and Sustainability

SpaceX had a historic debut with the biggest IPO in history, carrying on its momentum in the first full week of trading to become the 6th most valuable company in the world by market cap¹. The company’s IPO has also sparked some conversations regarding sustainability., Whilst we do not typically think of rockets and space exploration as being sustainable; SpaceX presents itself as a leader in sustainable space technology. In their own words, the company seeks “Sustainable Human exploration beyond Earth”².

Sustainable Rockets

Whilst space rockets have to burn a considerable amount of fuel, the industry as a whole only accounts for less than 0.01% of annual greenhouse gas emissions³. Nevertheless, SpaceX is seen a leader when it comes to sustainable space exploration due to its reusable rocket technology. For example, the NASA Space Launch System, used for the Artemis II lunar flyby in April 2026, consisted of three main parts: the core rocket, solid rocket boosters and the upper stage. These components are not reusable, and end up as waste in the bottom of the ocean. In contrast, the Falcon 9, SpaceX’s most widely used rocket, has reusable boosters and core systems, which reduce waste and operational cost.

Reusable rockets can also help address the problem of space debris, which refers to defunct human-made objects in orbit that pose risks to spacecraft. Whilst some rocket boosters remain in space, the Falcon 9 is designed to return to its launch platform on Earth. In addition, SpaceX’s Starlink satellites are also designed to deorbit and burn up in Earth’s atmosphere after their operational life.

Connectivity

While SpaceX is well-known for its rockets, its largest business segment is the Starlink internet service, which accounted for 61% of revenue in 2025⁴. With more than 10,000 satellites in orbit, Starlink provides fast and reliable internet access in places with connectivity issues. Access to reliable internet can support economic and social development by improving access to education, media, and digital services, and by enabling participation in the digital economy. This is reflected in its inclusion in the United Nations Sustainable Development Goals⁵. The technology is particularly relevant for remote regions which lack the proper internet infrastructure for fibre optic internet and has proved helpful in restoring communication after natural disasters have damaged existing infrastructure.

Semiconductors in Space

The concept of datacentres in space sounds like something out of a sci-fi film, but it is something which is extensively mentioned in SpaceX’s S-1 filing - a document which outlines a company’s business model ahead of an IPO. The company argues that AI could play a significant role in economic and technological development, but that this depends on meeting rising energy demand. AI and datacentres are projected to account for 5.4% of total energy demand by 2035⁶. SpaceX’s proposed solution to this energy problem is to have datacentres in space, where space-based solar arrays could generate five times more energy per unit area than solar systems on Earth. The company describes this as the “only truly scalable solution to terrestrial energy constraints in the age of AI”⁷.

While solar energy offers a potential solution, the concept of space-based datacentres raises practical questions. One is how the AI chips are cooled. AI chips generate heat, and if they get too hot, the chips could fail. Although space is extremely cold, it is a vacuum, meaning heat dissipates slowly through radiation. Starcloud, a company which is attempting to build data centres in space, estimates that systems in a potential space datacentre would be one thousand times slower⁸ at cooling the chips than the water cooling systems currently used for AI chips on Earth. So, while the idea is ambitious, it remains closer to science fiction than reality with technology at its current level.

Shareholder Suppression

There are concerns about the dual-class share structure proposed by SpaceX, with estimates suggesting that Elon Musk’s shares could represent 80-85% of SpaceX’s voting rights⁹. Governance best practice typically follows a one share, one vote principle in a company’s annual general meeting (AGM). However, dual-class share structures allow for certain shareholders, usually founders, to have multiple votes per share. This can limit the influence of other shareholders on corporate decisions. For example, if shareholders wanted to remove a poorly performing director at an AGM, this would be incredibly difficult without the votes of a shareholder with dual-class shares. However, some investors support this approach, arguing that it allows founders to better implement their vision without the influence of external ‘noise’.

SpaceX sits at the intersection of technical ambition and sustainability. Space exploration is not usually linked to sustainable development, yet the company’s work in reusable rockets, connectivity and energy shows how the industry could help address long term challenges. At the same time, some of its ideas, especially space based datacentres, are still speculative and technically complex. This balance highlights both the potential and the limits of using advanced technology to support a more sustainable future.

1. LSEG Refinitiv. (2026). Space Exploration Technologies Corp (SPCX) Market Cap [19/06/2026].
2. Space Exploration Technologies - S-1, p.186
3. What’s the Impact of the Space Industry on Climate Change? | by The Aerospace Corporation | Aerospace TechBlog | Medium
4. Space Exploration Technologies - S-1
5. Goal 9 | Department of Economic and Social Affairs
6. BloombergNEF 2026 Outlook
7. Space Exploration Technologies - S-1, p.4
8. Why cooling is the real obstacle to space-based data centres | World Economic Forum
9. SpaceX IPO is Musk ‘referendum,' say market watchers