Big tech's next move is to put data centers in space. Can it work?
Summary
Musk announced that his space-launch company, SpaceX, which had recently merged with his artificial intelligence company, xAI, would put data centers into orbit around the Earth. It all comes down to electricity, he explained. "You're power constrained on Earth," he said. "Space has the advantage that it's always sunny." Musk envisions legions of data-crunching satellites spinning around the planet, powering the AI revolution from above. The solar panels of the ISS are around half the size of a football field and produce around 100 kilowatts of average power, according to Olivier de Weck, a professor of astronautics at the Massachusetts Institute of Technology. "It's basically the amount of power that a single big car engine produces." To replicate a 100-megawatt data center in space would require a facility that's 500 to 1,000 times, depending on the orbit. "Is that feasible? Martynek, who has spent decades in telecom, says he's not worried about space data centers taking business from his company. "It seems like there's a lot of ifs and a lot of advancements that would have to occur, and I find it kind of hard to believe that all that could happen in two or three years," he said. "No one in data center land is losing any sleep." Artificial Intelligence data centers SpaceX Elon Musk Facebook Flipboard Email
Musk announced that his space-launch company, SpaceX, which had recently merged with his artificial intelligence company, xAI, would put data centers into orbit around the Earth. It all comes down to electricity, he explained. "You're power constrained on Earth," he said. "Space has the advantage that it's always sunny." Musk envisions legions of data-crunching satellites spinning around the planet, powering the AI revolution from above. The solar panels of the ISS are around half the size of a football field and produce around 100 kilowatts of average power, according to Olivier de Weck, a professor of astronautics at the Massachusetts Institute of Technology. "It's basically the amount of power that a single big car engine produces." To replicate a 100-megawatt data center in space would require a facility that's 500 to 1,000 times, depending on the orbit. "Is that feasible? Martynek, who has spent decades in telecom, says he's not worried about space data centers taking business from his company. "It seems like there's a lot of ifs and a lot of advancements that would have to occur, and I find it kind of hard to believe that all that could happen in two or three years," he said. "No one in data center land is losing any sleep." Artificial Intelligence data centers SpaceX Elon Musk Facebook Flipboard Email
## Article Content
Deep Dive
Big tech's next move is to put data centers in space. Can it work?
April 3, 2026
5:00 AM ET
Geoff Brumfiel
AFP via Getty Images and NASA/Collage by Emily Bogle/NPR
Standing before a friendly crowd in March, Elon Musk laid out his plan for the future of his companies, and it was literally out of this world.
Musk announced that his space-launch company, SpaceX, which had recently merged with his artificial intelligence company, xAI, would put data centers into orbit around the Earth.
It all comes down to electricity, he explained. "You're power constrained on Earth," he said. "Space has the advantage that it's always sunny."
Musk envisions legions of data-crunching satellites spinning around the planet, powering the AI revolution from above. It's the perfect pitch for taking SpaceX public. This week,
Bloomberg reported
that the company had filed documents confidentially to the Securities and Exchange Commission with the goal of going public this summer.
Musk also claims it makes financial sense. "I actually think that the cost of deploying AI in space will drop below the cost of terrestrial AI much sooner than most people expect," he said. "I think it may be only two or three years."
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Others are skeptical. Musk's timeline is "an optimistic interpretation," according to Brandon Lucia, a professor of electrical and computer engineering at Carnegie Mellon University who specializes in putting computers on satellites. The napkin math looks appealing, and power is free up there after all — but it turns out there are a lot of obstacles to building a data center among the stars.
A global power problem
Here on Earth, the problem is glaring: AI is
gobbling up electricity
around the globe. Global data-center power consumption is expected to roughly double to nearly 1,000 terawatt-hours by the end of the decade, according to an
estimate by the International Energy Agency
.
High-voltage transmission lines provide electricity to data centers in Ashburn, Virginia. Globally, data centers' demand for electricity is expected to roughly double by 2030.
Ted Shaffrey/AP
hide caption
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Ted Shaffrey/AP
To fill the gap, some companies are building dedicated gas turbines, while others are
investing in nuclear technology
. It's not enough, according to Philip Johnston, CEO and co-founder of Starcloud, which is seeking to build orbital data centers.
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"We're very quickly running up on constraints on where you can build new energy projects terrestrially," Johnston said. "Within six months, they'll just be leaving chips in warehouses because they don't have power for turning them on."
Starcloud launched
its first spacecraft
last fall with an Nvidia H100 chip on board. The company demonstrated the ability to run a version of Google's Gemini AI from space, and it plans to launch a second spacecraft in October. "That one has 100 times the power generation of the first one," Johnston said, though it's still expected to generate only around 8 kilowatts of power.
Google is also pursuing the idea of building data centers in space through a project known as
Suncatcher
. It envisions an 81-satellite cluster that it plans to build in partnership with the satellite-imagery company Planet. Two prototype satellites
will launch
in early 2027, according to the companies.
"Orbital data centers are an idea whose time has come," Will Marshall, Planet's CEO, wrote to NPR in an email. "When exactly it will be more cost efficient than terrestrial ones is debatable but now is the time to be working on this."
Everything must get bigger
To go from a handful of prototype satellites to something useful is not so easy. For one thing, the power requirements of the microchips used for artificial intelligence are enormous.
To get a sense of just how much power is needed, consider the largest power-producing facility in space right now: the International Space Station (ISS).
The solar panels of the ISS are around half the size of a football field and produce around 100 kilowatts of average power, according to Olivier de Weck, a professor of astronautics at the Massachusetts Institute of Technology. "It's basically the amount of power that a single big car engine produces."
To replicate a 100-megawatt data center in space would require a facility that's 500 to 1,000 times, depending on the orbit.
"Is that feasible? Yeah, I think it's feasible, but not next year and certainly not in three years," he said.
A slide from Elon Musk's presentation shows his concept of an "AI Sat Mini" that is larger than SpaceX's Starship rocket.
Screenshot by NPR/
SpaceX
hide caption
toggle caption
Screenshot by NPR/
SpaceX
And power is not the only requirement; the satellites also have to provide cooling to the microchips. While it's true that space is cold, it's also a vacuum. This means that when a satellite gets hot, there's no e
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## Expert Analysis
### Merits
- It all comes down to electricity, he explained. "You're power constrained on Earth," he said. "Space has the advantage that it's always sunny." Musk envisions legions of data-crunching satellites spinning around the planet, powering the AI revolution from above.
### Areas for Consideration
- A global power problem Here on Earth, the problem is glaring: AI is gobbling up electricity around the globe.
- Ted Shaffrey/AP hide caption toggle caption Ted Shaffrey/AP To fill the gap, some companies are building dedicated gas turbines, while others are investing in nuclear technology .
### Implications
- April 3, 2026 5:00 AM ET Geoff Brumfiel AFP via Getty Images and NASA/Collage by Emily Bogle/NPR Standing before a friendly crowd in March, Elon Musk laid out his plan for the future of his companies, and it was literally out of this world.
- Musk also claims it makes financial sense. "I actually think that the cost of deploying AI in space will drop below the cost of terrestrial AI much sooner than most people expect," he said. "I think it may be only two or three years." Cost of Living Is your electric bill going up?
- Will it work? "We're very quickly running up on constraints on where you can build new energy projects terrestrially," Johnston said. "Within six months, they'll just be leaving chips in warehouses because they don't have power for turning them on." Starcloud launched its first spacecraft last fall with an Nvidia H100 chip on board.
- Two prototype satellites will launch in early 2027, according to the companies. "Orbital data centers are an idea whose time has come," Will Marshall, Planet's CEO, wrote to NPR in an email. "When exactly it will be more cost efficient than terrestrial ones is debatable but now is the time to be working on this." Everything must get bigger To go from a handful of prototype satellites to something useful is not so easy.
### Expert Commentary
This article covers data, centers, space topics. Notable strengths include discussion of data. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 1537.