WHETHER it’s navigating flights, managing traffic signals or enabling seamless communication across smartphones, everyday life on earth increasingly depends on what’s happening in space. Governments around the world are investing heavily in space infrastructure.
The US has created a dedicated military branch – the Space Force – while the EU is developing its own secure satellite network IRIS. Closer to home, Malaysia has signalled its ambitions with the Malaysian Space Board Act 2022, which regulates and promotes local space activities.
As Malaysia pushes for greater digital inclusion under the Madani Economy framework, space connectivity could be the next game-changer.
Globally, the space economy is set to accelerate. McKinsey and the World Economic Forum estimate that the market will grow at an annual rate of 9% from 2024 to 2035, expanding from US$630 billion to US$1.8 trillion – putting it on par with the semiconductor industry.
This growth is fueled by demand for rare metals like platinum and cobalt, the rise of orbital tourism and the need for reliable, high-speed communication everywhere on earth.
Why LEO Satellites matter for Malaysia’s connectivity
No matter what humanity aims to achieve in space – be it mining, science or tourism – it all depends on one thing: connectivity. Especially the kind made possible by low earth orbit (LEO) satellites. Orbiting much closer to the planet’s surface than traditional geostationary satellites, LEO satellites dramatically reduce latency.
Compared to the 400 to 700 milliseconds typical of GEO satellites, LEO systems offer data transmission times of just 20 to 50 milliseconds – crucial for real-time applications, cloud gaming, smart ports and even precision agriculture such as in Sabah and Sarawak.
This technology directly aligns with Malaysia’s National Digital Network Plan (Jendela), which aims to extend high-quality internet coverage nationwide, especially in hard-to-reach areas. Programmes like Measat’s CONNECTme NOW already show how satellite technology can bring internet access to underserved rural communities.
DE-CIX and Space IX: Building an internet Exchange for the skies
From delivering internet access to remote villages to supporting mobile backhaul networks, LEO satellite constellations make it possible. But to fully unlock their potential, further technological innovation is needed. That’s why DE-CIX is partnering with the German Aerospace Center (DLR) to improve data traffic between LEO satellites and earth stations.
As part of the European Space Agency’s OFELIAS project, the goal is to develop new algorithms and protocols by July 2026. These systems will intelligently manage network usage and mitigate weather-related disruptions – especially important as the satellites use high-bandwidth laser connections rather than traditional radio. These optical links offer high speed but are vulnerable to rain, fog and cloud cover.
From rural Malaysia to the cosmos: The new frontiers of mobile internet
Enabling satellite-powered internet for rural populations, streaming content even mid-flight or maintaining mobile connectivity in the middle of the ocean – these are no longer science fiction. According to Deloitte, the LEO economy alone could be worth US$312 billion by 2035. Projects like OFELIAS are building the technical foundation for this future.
In fact, the transition has already begun. Nokia recently deployed a 4G/LTE mobile network on the moon, which will support future missions and enable surface communications between lunar bases and vehicles. Its goal: to understand how terrestrial mobile technologies can support life and work on other planetary bodies, starting with the moon and eventually Mars.
Space-based AI: Cloud data centres to exist beyond earth?
What if AI could be trained in space? Emerging concepts suggest a not-so-distant future where spaceborne data centers handle large-scale computing workloads. With satellites already performing basic onboard analytics, the next step is to build AI-ready infrastructure in orbit. Space offers a natural environment for these tasks: solar power is abundant and cooling is provided by the vacuum of space. A recent EU study envisions 1GW of AI processing capacity in earth orbit by 2050, which could bring down costs dramatically and open new frontiers for data-intensive applications. Thales Alenia Space projects the market potential in the billions of euros by mid-century.
Malaysia is a country that is investing heavily in green data centres and AI innovation under the Madani Economy and Digital Economy Blueprint. The idea of training AI in space could one day complement local developments in Johor, Cyberjaya and Kedah.
Space-IX: Building the internet of space
Whether it’s connecting LEO satellites, enabling space-based AI, or establishing human settlements off-earth, all of this will require fast, seamless interconnection between networks in space and on earth. That’s the mission behind DE-CIX’s Space-IX initiative – the world’s first internet exchange for space. Just as DE-CIX Malaysia in Kuala Lumpur helps power the country’s internet backbone today, Space-IX will provide the same capabilities in orbit.
Starting with intelligent LEO interconnections, the platform will eventually support a wide array of users, from satellite operators to cloud providers and application developers – helping them connect with one another in real time, across earth and space.
A connected cosmos for business and society
Space isn’t only about economic opportunity. According to McKinsey and the World Economic Forum, industries such as logistics, agriculture and defence stand to benefit the most – but the impact goes further. Satellite-based networks can help monitor climate change, improve disaster response, enable telemedicine and bridge digital divides. Just as the first steps of a human on the moon once changed history, Malaysia’s participation in an interconnected cosmos could define the nation’s next leap forward – bringing prosperity, inclusion and sustainability not only for Malaysians, but for the wider Asean region.
This article is contributed byDE-CIX CEO Ivo Ivanov (pix).
