Iridium Communications Inc

A critical layer of infrastructure is rapidly emerging above our heads. Low Earth Orbit (LEO) – the region of space within 2,000 km of Earth – is evolving from a technical domain into a strategically vital environment for the 21st century. It underpins global navigation, telecommunications, defense, and connectivity, attracting significant investment.

LEO satellites offer quicker responses, reduced launch costs, and faster communication speeds compared to those in higher orbits. Unlike satellites in Geostationary Orbit (GEO), LEO satellites don’t remain fixed above a single point on Earth, often operating in constellations for maximum coverage.

Investment in the sector reached over $45 billion in 2025, a substantial increase from just under $25 billion in 2024, according to Space IQ.

“Orbital access is becoming a strategic asset much like ports, cables, or energy grids on Earth,” says Carlos Moreira, CEO of Wisekey.

Elon Musk’s SpaceX is a prominent example of this shift, operating the Starlink constellation with over 9,500 satellites and planning further expansion, potentially reaching one million satellites with a proposed solar-powered orbital data center system.

Nvidia recently unveiled a new platform aimed at bringing AI computing into orbit, designed to support orbital data centers, geospatial intelligence, and autonomous space operations. Nvidia CEO Jensen Huang stated, “Space computing, the final frontier, has arrived,” envisioning orbital data centers as instruments of discovery and spacecraft as self-navigating systems.

Amazon’s Project Kuiper plans to deploy over 3,000 satellites, with approval for an additional 4,500 from the FCC. Blue Origin, founded by Jeff Bezos, anticipates launching over 5,000 satellites by late 2027.

In Europe, Eutelsat’s OneWeb LEO network currently consists of over 600 satellites. France has committed 1.35 billion euros ($1.58 billion) in investment, becoming Eutelsat’s largest shareholder with a roughly 30% stake. China has also filed plans for over 200,000 satellites across 14 constellations.

Over $400 billion has been invested in the space economy since 2009, with the U.S. Contributing over half, followed by China, according to Space Capital. Chad Anderson, Space Capital CEO, believes the industry is in the “early innings of a multi-decade infrastructure cycle.”

Around a dozen space companies are publicly listed, with more anticipated, including a potential SpaceX IPO, which Anderson suggests could be a “Netscape moment” for the space sector.

The governance of LEO is fragmented, with the Outer Space Treaty establishing state responsibility for space activities and UN guidelines providing non-binding sustainability principles. The ITU manages global spectrum allocation, while industry groups promote best practices.

However, experts argue existing frameworks are inadequate for the current environment. Raza Rizvi, a TMT lawyer at Simmons & Simmons, notes that much of the current legal structure was designed for GEO satellites. Siamak Hesar, CEO of Kayhan Space, emphasizes the need for regulations to evolve with the industry’s growth.

Martijn Rogier van Delden, Head of Europe Consumer for Amazon LEO, sees “tremendous opportunity” for LEO satellites to connect billions, describing it as a “game changer to bridge the digital divide.”