The commercialization of low Earth orbit (LEO) has resulted in an exponential growth of data generated in space. This growth is primarily driven by the increase of remote sensing applications, such as Earth observation satellites, which present a significant challenge for data storage and transmissions. This paper studies the challenges and opportunities of data management in space, while focusing on the increase of congestions at ground stations and costs associated with down streaming data. Recently, there has been a significant surge in the deployment of satellites. Majority of these satellites generate data related to Earth observation operations, which have increased the demand for data storage, processing, and transmission. Traditional data management relies on ground stations that are experiencing unprecedented congestion levels, leading to delays, data losses, and increased operational costs. This research paper aims at exploring innovative solutions to tackle these problems through the integration of advanced technologies capable of storing and processing data in LEO. Managing data in space could reduce the volume of data transmitted to Earth, by allowing scientists and satellite operators to transmit processed and relevant data only. Importantly, real-time data analysis and decision making can be achieved by processing data in LEO. Accomplishing these steps can be critical for time-sensitive operations, such as responses to natural disasters. Data storage capabilities in LEO is viewed as a cost-effective alternative to conventional transmission methods. By utilizing such capabilities, satellite operators could optimize their communication process through the transmission of processed and vital data to ground stations. This approach reduces the frequency and volume of data transmissions, lowering operational costs and minimizing data congestions at ground stations. By decreasing the dependency of satellite operators on ground stations and the volume of data transmissions, the proposed services can result in substantial cost savings and enhanced operational processes. In addition to the economic benefits, this paper highlights the technologies required to successfully operate data storage and edge computing systems capable of withstanding the harsh environment in space. The exponential increase of data generated in LEO necessitates innovative solutions to optimize future operations and enable sustainable growth in near-Earth space. The ability to provide data storage and edge computing services in LEO present viable solutions to address challenges associated with congestions at ground stations, increased transmission costs, and delays in obtaining critical data. This research underscores the importance of developing space-based data management solutions that would provide the necessary infrastructure to sustain the commercialization of LEO.