Elon Musk Bets on Space-Based Data Centers for AI Expansion

HOUSTON, Texas — As demand for computing power skyrockets due to artificial intelligence, Elon Musk has introduced a bold vision: adapting SpaceX‘s Starlink technology for space-based data centers. Musk announced this on X (formerly Twitter), stating, “Simply scaling up Starlink V3 satellites, which have high-speed laser links, would work. SpaceX will be doing this.”

This announcement follows growing interest from tech giants in utilizing space for computing solutions. Former Google CEO Eric Schmidt recently invested in Relativity Space, aiming to create orbital computing hubs, while Amazon founder Jeff Bezos predicted the construction of gigawatt-scale data centers in orbit within the next 10 to 20 years.

Proponents of space-based data centers highlight the advantages of unlimited solar energy and a minimal environmental footprint on Earth. Typically, ground-based data centers face mounting criticism over their energy consumption and land use. However, some critics argue that the economics of building and maintaining data centers in orbit are not feasible and that the engineering challenges are underestimated.

Musk’s Starlink network has already proven its capabilities by delivering high-speed internet to millions globally, using thousands of satellites. With the upcoming Starlink V3 satellites capable of reaching throughput speeds of up to 1 terabit per second (Tbps), there are significant implications for future orbital computing clusters.

“The amount of momentum from heavyweights in the tech industry is very much worth paying attention to,” said Caleb Henry, director of research at Quilty Space. “If they start putting money behind it, we could see another transformation of what’s done in space.”

In November, Starcloud plans to launch an AI-equipped satellite featuring an Nvidia H100 GPU as part of their ambition to build a 5-gigawatt data center. Starcloud co-founder Phil Frank stated, “Our mission is to build things that are going to be useful in space.” The company is collaborating with Rendezvous Robotics, which focuses on autonomous assembly techniques for large-scale construction.

Despite optimism about the potential of space-based data centers, significant hurdles remain. Starcloud’s data center plans include solar and cooling panels measuring approximately 4 kilometers in width and length, dwarfing the solar arrays of the International Space Station.

SpaceX’s use of Starlink technology for data centers is seen as a transformative step in addressing Earth’s expanding computing needs. As the industry evolves, many are watching to see how these ambitious projects will unfold in the coming years.