Hungarian telco 4iG is set to invest up to $100 million in space data center firm Axiom Space.

4iG Space and Defence has signed a non-binding commitment letter with Axiom Space Inc. outlining the intention to join a capital increase with the latter, granting 4iG an equity stake in the company, in order to fuel the Orbital Data Center (ODC) programme, which would be Europe’s first such installation.

“The commitment established with Axiom Space marks a milestone in US–Hungarian relations, creating a unique opportunity for a Hungarian company to become a strategic investor in a US space enterprise, thereby strengthening economic and technological cooperation between the two countries,” said István Sárhegyi, CEO of Budapest-based 4iG SDT.

“The agreement represents international recognition of Hungary’s space capabilities, could open new horizons in research and development, and lays the foundation for long-term engagement with global market players. Through the Orbital Data Center programme, we can not only leverage the expertise of Hungarian professionals but also inspire the next generation in space exploration and STEM.”

The companies have already signed two business cooperation agreements this year on LEO and orbital data center technologies in the interest of exploring data storage and processing in space.

Such on-board processing capabilities have long been sought to pre-process satellite data before it is transmitted in order to slim down data volumes and speed up turnarounds. Entire data centers in space are an organic next thought, although given security concerns associated with the space domain, large-scale processing and storage could create compelling targets for intelligence agencies. The difference between simple onboard processing and a full-blown orbital data center may be one of semantics.

This week, Amazon founder Jeff Bezos was reported by Reuters to remark that gigawatt-scale data centers would be built in space within the next 10-20 years, powered by assured solar energy, which would be capable of outperforming those on Earth.

Houston-based Axiom Space has a reputation for leading the way in American space infrastructure as the company chosen by NASA to work closely with the ISS through Axiom Station, a proposed segment to connect to the legendary NASA outpost during its final years before outliving it after the ISS is retired by 2030.

Axiom is one of a handful of companies seeking to operate the world’s first private space stations, providing services like in-orbit servicing and manufacturing, human habitation, and other ventures.

Founded as Freesoft in 1990, Budapest Stock Exchange-listed 4iG provides a number of IT services, including software development, managed services, and cybersecurity, as well as data center and cloud offerings. In recent years, the company has expanded into new areas, founding its own satellite firm and buying both local satellite and telecoms firms.