Planet Labs generates 60% of its revenue from military contracts, a figure that shows how deeply government defense spending shapes the commercial space industry. The dependency on the Pentagon and allied forces comes as some business leaders question the costs of being a publicly traded company. Andrew Feldman recently argued that going public creates unnecessary burdens for firms. At the same time, a new projection suggests space-based data centers could bring in trillions of dollars in revenue within the next decade.
Military Contracts as Planet's Backbone
For Planet, the satellite imagery company, the 60% revenue share from military customers means its growth is tied closely to defense procurement cycles. The company's fleet of Earth-observation satellites provides data used for reconnaissance, mapping, and monitoring. Competing for these contracts influences where Planet invests in research and development. While private-sector clients also buy its services, government spending remains the dominant driver.
Feldman on the Burdens of Public Markets
Andrew Feldman's statement that going public creates unnecessary burdens adds to a broader debate about the costs of listing. Public companies face quarterly earnings pressure, extensive disclosure rules, and short-term investor demands. For space startups, which often require years of heavy investment before turning a profit, those burdens can be especially heavy. Some firms now choose to stay private longer or raise capital through alternative routes rather than pursue an initial public offering.
Orbital Data Centers and Trillion-Dollar Projections
Far beyond current revenue streams, a bold idea is gaining traction: putting data centers in orbit. Proponents say space-based computing can offer lower latency for global data traffic and tap into continuous solar power. The potential market is estimated in the trillions over the next decade, drawing interest from investors and tech companies. But the concept faces serious technical hurdles, including hardware reliability in harsh environments, high launch costs, and orbital debris management.
These three threads — Planet's reliance on military contracts, Feldman's warning about public listings, and the promise of orbital data centers — each highlight a different challenge facing the space economy. Government spending provides steady revenue but also ties companies to political priorities. Public-market pressure can distort long-term planning. And even the most ambitious projections for space computing remain speculative. How the industry navigates these forces will define its next chapter.
