Space-based Data Centers: Promising over the next decade, validating the investment case today for DLR, EQIX

Research evidence excerpt

Space-based Data Centers: Promising over the next decade, validating the investment case today for DLR, EQIX

Truist Securities

Equity Research Report June 28, 2026

TMT: Data Centers, Communications

Infrastructure & Technology Space-based Data Centers: Promising

over the next decade, validating the

Matthew Niknam investment case today for DLR, EQIX

212-326-6151 Why read this note? In recent weeks, we have increasingly fielded investor questions Matthew.Niknam@truist.com

re: space-based data centers, and the implications for our Data Center coverage

(DLR, EQIX).

Mo Chen Of course, this is less surprising in the context of the recent SpaceX (SPCX, Not Rated)

212-590-0901 IPO, alongside initiatives from others (ie: Google (GOOGL, Buy, Squali), Blue Origin Mo.Chen@truist.com

(private)) evaluating the prospects for orbital compute.

While there are many facets we can evaluate re: the feasibility of / timing when space-

Joshua Park based data centers could become more cost effective, we evaluate this concept through

212-537-8788 the lens of our existing (terrestrial-based) Data Center coverage, for the purpose of this Joshua.Park@truist.com

report.

18 Page Document

Our take: Our initial work highlights the following key takeaways:

1. The sheer concept of evaluating space-based data centers supports our view

Reasons for this report that favorable supply/demand dynamics benefitting terrestrial Data Center

platforms persist for the foreseeable future. Simply put, vacancy in top markets

✓ Deep Dive Report remains at record lows, power/grid constraints are not easing, and the proliferation

✓ Sector Read-Throughs of Inference-related AI workloads (including agentic AI) provides an incremental

tailwind for both DLR (Buy) / EQIX (Buy) in our view. Net net, low supply and high