Billionaires push for data centers on Earth and in low‑Earth orbit
Billionaires are betting on a future where data lives not just in sprawling warehouses but also in the thin air above us. The idea sounds bold, yet the logistics are anything but simple. On the ground, every rack of chips needs routine upkeep; technicians are already scarce, and the cost of keeping servers humming grows each year.
Shift the setting to orbit, and the picture changes dramatically—there’s no crew to swap out a faulty module, no workshop to service a drifting satellite. The gap between ambition and practicality widens, prompting investors to ask hard questions about sustainability, cost, and the very feasibility of “space‑based” cloud services. While the allure of limitless bandwidth and global reach is tempting, the reality is a fragile infrastructure that could buckle under its own complexity.
That tension sets the stage for a crucial inquiry:
“How do we keep low Earth orbit open for business for generations to come?”
"How do we keep low Earth orbit open for business for generations to come?" Practically, data centers on Earth require regular maintenance to keep the racks of chips humming along, and trained human operators are already in short supply. Repairs of satellites in space, meanwhile, don't happen. Astronauts fix telescopes and equipment attached to the International Space Station or NASA's Hubble Space Telescope.
The prospect of robots reorienting or refueling satellites in orbit is theoretically possible but rare. Despite earthly wariness from astronomers outside Big Tech, the popularity of space data centers is likely to continue for years and even decades. Both Google and startup Aetherflux plan to launch satellites in early 2027.
Starcloud plans to launch its second satellite in October 2026 and then "ramp up production in 2027, 2028," Johnston said. He views SpaceX as Starcloud's main competitor, despite no official mention from Musk's company on when a space data center might be launched, only a post on X from Musk about SpaceX "simply scaling up Starlink V3 satellites" to achieve this. Blue Origin has reportedly been working on space data centers for over a year but has also not publicly commented on any plans.
Constellations close to Earth present good opportunities for "trying to make life better here back on Earth," space scientist Akhavan-Tafti said. But it needs to be done in a sustainable way: "How do we keep low Earth orbit open for business for generations to come?" One option? Avoid launching more stuff into orbit, according to Seth Gladstone of Food & Water Watch, the environmental group leading a petition to halt data center construction.
"Why is it that Big Tech always seems to think a solution to its many Earth-bound problems is to blast more stuff into space?"
Space may soon host the next wave of AI compute, but the path is far from clear. Six proposals announced for multi‑gigawatt data centers in 2025 illustrate ambition, yet none detail how the massive power demand will be met without further straining terrestrial resources already stretched by land and water consumption. Power is a problem.
Because Earth‑based facilities rely on regular human upkeep—a workforce already scarce—replicating that model in low‑Earth orbit raises practical concerns; satellite repairs are currently not routine. The quote, “How do we keep low Earth orbit open for business for generations to come?” highlights the unanswered sustainability question. Earthlings are catching on that power‑hungry data centers take up land and water, and human operators are already in short supply.
Maintenance is scarce. Moreover, the shift from a hobbyist view of space to a commercial venture is evident, but whether the necessary infrastructure, regulatory frameworks, and economic incentives will align remains uncertain. In short, billionaire enthusiasm fuels proposals, yet the technical and logistical hurdles suggest space‑based data centers are still more concept than reality.
Further Reading
- Billionaires are racing to build data centers in space - Semafor
- Bezos and Musk Race To Bring Data Centers To Space; Space Companies Backed By Tech Billionaires Hope To Move AI Data Centers Off Earth - The Wall Street Journal
- Tech moguls want to build data centers in outer space - The Wall Street Journal (syndicated via Rose Law Group Reporter)
- Tech CEOs can't stop talking about data centers in space - Benzatine Newsroom
- Tech Billionaires Are In Space, And Data Centers Are Following Close Behind - Bisnow
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Common Questions Answered
What challenges do billionaires face when building data centers in low‑Earth orbit?
The main challenges include the lack of on‑site crew to replace faulty modules and the absence of workshops for servicing drifting satellites, meaning any repairs must be done remotely or by autonomous robots. Additionally, ensuring a reliable power supply without over‑taxing Earth’s resources adds a significant hurdle.
How many proposals for multi‑gigawatt data centers were announced for 2025, and what key issue remains unresolved?
Six proposals for multi‑gigawatt data centers slated for 2025 were announced, highlighting the ambition to host massive AI compute in space. However, none of the proposals explain how the enormous power demand will be satisfied without further straining terrestrial land and water resources.
Why is the shortage of trained human operators a concern for Earth‑based data centers, according to the article?
Earth‑based facilities require regular maintenance of server racks, but the pool of trained technicians is already scarce, driving up operational costs. This shortage raises concerns that scaling up data centers could become unsustainable without new workforce solutions.
What potential role do robots play in maintaining satellites for future orbital data centers?
Robots could be tasked with reorienting or refueling satellites, providing a way to perform maintenance without human astronauts. This capability is seen as essential for keeping low‑Earth‑orbit data centers operational over generations.