ISRO has initiated a preliminary study to establish orbiting AI-driven data centres, marking a major step in India’s bid to lead next‑generation space infrastructure and digital sovereignty. The Department of Space told Parliament and later confirmed via a PIB release in December 2025 that early evaluations show a proof‑of‑concept for edge computing infrastructure in space is technically feasible, with ISRO now working on conceptual designs for in‑orbit processing and storage systems. These AI data centres, envisaged in low Earth and possibly sun‑synchronous orbits, would process satellite imagery and communications data in real time, cutting latency, easing bandwidth bottlenecks and reducing dependence on foreign cloud providers. The initiative, aligned with Atmanirbhar Bharat, leverages India’s strengths in cost‑effective launches and onboard electronics, even as challenges such as radiation‑hardened chips, autonomous maintenance and robust power and thermal management remain central to realising operational systems over the next few years.