Space Data Corp runs an interesting business located in Chandler Arizona. Through the use of cheap disposable $50 latex balloons (very similar to weather balloons), Data Corp is able to provide Internet access to even the most rural Americans (36% of rural Americans don’t have Internet connections).

Space Data’s chief executive Jerry Knoblach explains that he has hired farmers to help launch the balloons every morning. The farmers inflate the balloons with hydrogen and launch them. Typically a balloon takes approximately 2 hours to reach its target altitude of between 65,000 and 100,000 feet. Each balloon carries a transceiver which can provide Internet access to thousands of square miles (essentially a miniature cell phone tower). One balloon will remain in the atmosphere for up to 24 hours and then ultimately the transceiver will fall to the earth with a parachute, only to begin the process all over again. The balloons and transceivers are tracked with GPS and Space Data Corp says its balloons cover Texas, New Mexico, Oklahoma and Arizona.

This business has caught the attention of Google, as it sees this as an opportunity to open new markets for rural America. If you recall, Google is taking part in bidding for a chunk of prime radio spectrum in Washington.

It’ll be interesting to see how this story unfolds.