Hear more from Reid Menge
Is space the next investing frontier? BlackRock’s Reid Menge breaks down why terrestrial constraints, AI-driven demand and falling technology costs could mean portions of economic activity move into orbit. From powering AI with space-based solar to satellites serving multiple industries at once, the opportunity may be closer than many think.
Discussions regarding the expansion of the economy into space have moved beyond the realm of science fiction. We are witnessing concrete progress and significant potential across various sectors, primarily driven by the growing necessity for increased capacity to fuel artificial intelligence.
Could space be the next investing frontier?
We see several reasons to believe it could:
1. The constraints on Earth are real. Power and land are scarce, and permitting for development is time consuming and wrought with political and regulatory complexities. Space could offer abundant solar power, no zoning requirements and global distribution.
2. One infrastructure can serve many end markets. The dual-use nature of space infrastructure makes the economics work. Every satellite is a sensor, a node or a compute endpoint that can serve multiple needs, whether commercial or defense related. The same imaging data can optimize crop yields, assess environmental conditions, or inform disaster inflation dynamics and lifting the competitiveness of developed Asian countries, with important portfolio implications.
Powering the intelligence revolution
Analyze investments within a portfolio context in minutes. Add your latest ideas to an existing portfolio, create a new portfolio, or browse our models to get started.
