A new layer of essential infrastructure is rising above us.
Low Earth Orbit (LEO) — identified by NASA as the area of space at an altitude lower than 2,000 km — is swiftly transitioning from a specialized technical niche to one of the most strategically crucial settings of the 21st century.
It supports worldwide navigation, communication, defense, and global connectivity while attracting significant investment.
LEO satellites provide quicker responses, lower launch costs, and enhanced communication speeds due to their proximity to Earth. Unlike satellites in higher orbits, they don’t remain over a fixed location on Earth and frequently operate in constellations to optimize worldwide coverage.
Higher orbits, such as Medium Earth Orbit (MEO) and Geostationary Orbit (GEO), host established satellite infrastructure but face stricter operational constraints.
Investment in this sector exceeded $45 billion in 2025, a substantial rise from just under $25 billion in 2024, per Space IQ, a report monitoring startup activity and investment trends within the space economy.
“Orbital access is evolving into a strategic resource akin to ports, cables, or energy grids on Earth,” stated Carlos Moreira, CEO of Swiss cybersecurity firm Wisekey, in an interview with CNBC.
The most prominent illustration of this trend is Elon Musk‘s rapidly growing satellite network. His aerospace company, SpaceX, currently operates the Starlink constellation comprising over 9,500 satellites.
The firm aims to enhance this network by introducing thousands of additional satellites. SpaceX has also put forth a proposal for a much larger initiative, a solar-powered orbital data-center scheme that could eventually incorporate as many as one million satellites.
However, SpaceX is not the sole player. This week, tech innovator Nvidia launched a new platform aimed at integrating AI computing into space. This system is designed to back orbital data centers, geospatial intelligence, and autonomous space missions.
“Space computing, the ultimate frontier, is here,” proclaimed Nvidia CEO Jensen Huang at the company’s GTC conference 2026 in San Jose. This strategy could transform orbital data centers into discovery tools and spacecraft into self-guided systems, he noted.
Amazon LEO — previously known as Project Kuiper — anticipates deploying over 3,000 satellites into Low Earth Orbit. Earlier this year, the Federal Communications Commission (FCC) greenlighted an additional 4,500 satellites for future launch. Simultaneously, Blue Origin, established by Jeff Bezos, is expected to launch over 5,000 satellites by the end of 2027.
In Europe, Eutelsat‘s OneWeb LEO satellite network presently consists of over 600 satellites. Operating on a smaller scale for now, France hopes the company will eventually compete with Musk’s Starlink and has committed 1.35 billion euros ($1.58 billion) in investments towards Eutelsat, becoming the company’s largest shareholder with approximately 30% ownership.
China has also submitted plans for over 200,000 satellites across 14 constellations.
The magnitude of these upcoming deployments signifies a fundamental change in the utilization, governance, and commercialization of space.
A new investment phase
Since 2009, the space economy has seen over $400 billion in investments, with the U.S. contributing more than half, followed by China, according to Space Capital.
Chad Anderson, CEO of Space Capital, stated that the industry is still in the “early stages of a multi-decade infrastructure development.” He emphasized that while the sector remains in its infancy, it has progressed enough to provide significant public market prospects.
Around a dozen space firms are already publicly traded, with more expected to follow suit in the upcoming year, including the highly anticipated SpaceX IPO, which Anderson suggested could signify the space sector’s “Netscape moment” — a transformative event that alters investor perceptions and attracts wider capital into the market.
As the momentum gathers pace and commercial endeavors increase, Wisekey’s Moreira cautioned that this expansion must be “administered with the same level of seriousness as digital sovereignty on Earth.”
He contended that space should continue to be a realm that serves humanity — facilitating connectivity, scientific exploration, and economic advancement — rather than devolving into a battleground of unregulated competition and systemic threats.
Regulatory challenges
A principal hurdle for market expansion is the fragmented governance of LEO and its intricate operational framework.
At the global level, the Outer Space Treaty asserts that states are accountable for all space activities conducted under their jurisdiction, while the UN’s space debris mitigation guidelines provide non-binding sustainability standards.
The International Telecommunication Union (ITU) oversees global spectrum allocation, assisting in the prevention of interference and ensuring dependable operations throughout communication networks. Alongside these formal mechanisms, industry bodies such as the Space Safety Coalition advocate for voluntary best-practice guidelines.
National authorities then oversee operational management. In the United States, for instance, the FCC licenses satellite constellations and spectrum usage, while the FAA handles launch and re-entry operations.
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Nonetheless, numerous experts advocate that current frameworks are no longer adequate.
Raza Rizvi, a TMT attorney at Simmons & Simmons, asserts that much of the existing legal framework was crafted for the more stable conditions of GEO. “As we move into a more risky, intricate environment in LEO, we lack specific legal instruments to handle this new technology,” she noted.
Siamak Hesar, CEO of spaceflight intelligence company Kayhan Space, remarked that existing regulations were developed for slower-moving, government-driven space initiatives, adding, “Regulations must adapt to the scale at which the industry is progressing.”
He argues that regulation now necessitates a “fresh perspective,” given that commercial operators, rather than governments, are becoming the principal users of space.
This transition from state-led to commercially oriented activities is also reshaping how industry leaders perceive the prospects ahead. Martijn Rogier van Delden, Head of Europe Consumer for Amazon LEO, envisions “immense potential” for LEO satellites to link billions of users, calling it “a revolutionary factor to close the digital gap.”
