Starcloud CEO Philip Johnston on the potential role orbital data centers could play in meeting growing AI compute demand—and the technical and economic uncertainties that remain. Philip Johnston, a McKinsey alumnus and cofounder of orbital compute infrastructure provider Starcloud, believes that space-based systems could become a meaningful part of the future compute landscape. He recently spoke to McKinsey Partner Luca Bennici about how the space-based data center technology is evolving, the challenges involved, and what needs to happen for orbital data centers to become a viable complement to terrestrial infrastructure. The interview transcript has been edited for clarity and style.