Tech billionaires Jeff Bezos and Elon Musk are reportedly in a futuristic race to build AI data centers in space. The founders of Blue Origin and SpaceX are exploring ways to deploy AI computing infrastructure in orbit, according to a recent report by The Wall Street Journal. They plan to address growing energy and capacity woes on Earth through this endeavor.
The push comes amid a global AI boom that has sharply increased demand for computing power. In the United States alone, nearly 4,000 data centers are either operational or under construction, according to Pew Research Center data. Globally, estimates from management consultancy McKinsey suggest that spending on data centers could reach as high as $6.7 trillion by 2030 as companies race to support increasingly complex AI models.
Sources cited in the report identify a stealthy, over-one-year effort by Jeff Bezos' Blue Origin to develop space-based data center technology. The concept would involve placing computing systems in orbit, possibly powered by solar energy, to process AI workloads without drawing extensively from Earth's power grids. Meanwhile, Elon Musk's SpaceX is reportedly considering an enhanced version of its Starlink satellite network that would transport AI computing payloads into orbit, expanding its role beyond broadband internet delivery.
The very idea of hosting AI infrastructure in space is not without its setbacks. It costs a lot to put heavy computing hardware into orbit, and keeping such systems running poses some grave technical challenges. Supporters say space data centers might alleviate an incredible energy burden: how much AI computing is placing on Earth. Extensive AI model training requires substantial electricity, often drawn from resource-intensive processes that contribute to rising costs and environmental concerns.
These concerns are already being felt on the ground. A 2024 report by the U.S. Department of Energy estimated that data centers accounted for about 4.4% of total U.S. electricity consumption in 2023. That number is projected to increase sharply, reaching between 6.7% and 12% by 2028. In some regions, the expansion of data centres has reportedly led to higher electricity prices for residents.
Also Read: Oracle and OpenAI Boost Stargate AI Data Center Capacity by 4.5 Gigawatts
Industry experts said falling launch and satellite costs were making once-theoretical ideas more realistic. "Taking resource-intensive infrastructure off Earth has been an idea for years, but it required launch costs to come down. We are nearing that point," said Will Marshall, cofounder of satellite imaging company Planet Labs.
Adding to the momentum, late last year, Google said it would team up with Planet Labs to launch two prototype solar-powered satellites fitted with AI chips into orbit. The companies plan to launch the satellites in early 2027 as a test of how space-based AI computing networks might work at scale. As Bezos and Musk push the boundaries of both space technology and artificial intelligence, their latest competition signals a bold shift in how and where the world's digital infrastructure may be built in the future.