In brief: The new space race has attracted multiple private ventures. From cargo delivery to facility construction in orbit and on the Moon, the burgeoning space economy has everyone racing to get in on the ground floor. If successful, an upcoming mission will establish the first lunar data center. Florida-based startup Lonestar Data Holdings plans to launch the first Moon-based data center dubbed the "Freedom Data Center." The compact but fully operational information hub will piggyback on an upcoming lunar lander mission by Intuitive Machines aboard a SpaceX Falcon 9 rocket in February. Lonestar says storing data on the Moon offers unique benefits.First, it provides unmatched physical security and protection from natural disasters, cyber threats, and geopolitical conflicts that could put Earth-based data at risk. The solar-powered mini-facility is also much more environmentally friendly than energy-hungry data centers on our home planet, utilizing naturally cooled solid-state drives.The company has already lined up some high-profile early customers for their lunar platform, including the state of Florida, the Isle of Man government, AI firm Valkyrie, and the pop rock band Imagine Dragons.The company has been working towards this milestone for years, successfully testing data storage on the Moon in February last year and aboard the International Space Station in 2021. However, putting something as complex as a data center on the lunar surface is still an enormous technical challenge.The harsh environment, maintenance difficulties, and astronomical costs could create some problematic issues. There are also inherent risks associated with space launch. There is no option for equipment recovery if something goes wrong. Thankfully, the data center will have a ground-based backup at a Flexential facility in Tampa. // Related StoriesLonestar has yet to release specific operational details or hardware specs. It will be interesting to see the company's plans for communication between lunar and ground-based facilities.Lonestar isn't the only venture planning to establish a lunar data center. Reuters reports that several other companies are eyeing similar space-based facilities, including Lumen Orbit, which recently raised $11 million at a $40 million valuation.Masthead credit: Pavel Chagochkin