Tech Giants Envision Launching Data Centers Into Space

For starters, the hypothetical systems he envisions process data at a much slower pace than those on Earth. They would face continuous radiation exposure, and “obsolescence would pose challenges” since making repairs or upgrades could be incredibly complicated. Hajimiri believes that space-based data centers could eventually become a practical solution, but he remains uncertain about the timeline. “It could definitely be feasible in a few years,” he remarked. “The real question is how effective and cost-efficient they would be.”

The concept of placing data centers in orbit transcends casual tech discussions or academic exploration; it has even caught the attention of elected officials in cities where companies like Amazon aim to establish data centers. During an August hearing, Tucson, Arizona, councilmember Nikki Lee passionately articulated their potential, despite the council’s unanimous decision to reject a proposed data center in their city.

“Many people are suggesting that data centers don’t belong in the desert,” Lee noted. However, she emphasized that “if this is genuinely a national priority,” the focus should shift towards “allocating federal research and development funds to investigate data centers that could operate in space. And though this may sound outlandish and somewhat science fiction-like, it’s already in progress.”

That’s accurate, though the current efforts are largely experimental rather than industrial. A startup called Starcloud aimed to launch a refrigerator-sized satellite equipped with several Nvidia chips this past August, but the launch was postponed. Lonestar Data Systems successfully landed a small data center, carrying valuable data like an Imagine Dragons song, on the moon a few months ago; however, the lander toppled over and malfunctioned in the process. More launches are planned in the upcoming months. Yet, “it’s very challenging to anticipate how quickly this concept will achieve economic viability,” stated Matthew Weinzierl, a Harvard University economist specializing in market dynamics in space. “Space-based data centers may find certain niche applications, such as processing data collected in space or enhancing national security capabilities,” he indicated. “To truly compete with terrestrial centers, though, they will need to match cost and service quality.”

At present, deploying a data center in space is far more expensive than establishing one in Virginia’s Data Center Valley, where demand for power could potentially double in the next decade without regulation. As long as terrestrial options remain more affordable, profit-driven companies will continue to prefer expanding data centers on land.

Nonetheless, one factor could prompt OpenAI and others to consider the cosmos: minimal regulation in space. Building data centers on Earth mandates acquiring municipal permits, and local governments can impede progress due to community concerns about issues like water usage, electricity costs, or environmental impact. In space, there are no neighbors to voice complaints, noted Michelle Hanlon, a political scientist and lawyer heading the Center for Air and Space Law at the University of Mississippi. “If you’re a US company looking to establish data centers in space, it’s wise to act swiftly before Congress decides that regulation is necessary.”