  We study the kinetic decoupling of light (lesssim 10 GeV) magnetic dipole
dark matter (DM). We find that present bounds from collider, direct DM
searches, and structure formation allow magnetic dipole DM to remain in thermal
equilibrium with the early universe plasma until as late as the
electron-positron annihilation epoch. This late kinetic decoupling leads to a
minimal mass for the earliest dark protohalos of thousands of solar masses, in
contrast to the conventional weak scale DM scenario where they are of order
10^{-6} solar masses.
