DATA CENTER IN SPACE

While the idea of space-based data centers may sound like science fiction, industry analyst Andrew Obin explains it’s gaining credibility due to real-world constraints on Earth—especially limited electricity capacity, rising power costs (which make up 40% of data center operating expenses), and regulatory and environmental hurdles. Space offers advantages like abundant solar energy (8–10x more efficient than on Earth), natural cooling, and fewer regulatory barriers. Recent developments—such as NVIDIA’s small-scale “Starcloud” experiment, Google’s “Suncatcher” research, and SpaceX’s progress toward ultra-low-cost launches with Starship—suggest the concept could become economically viable if launch costs drop to around $200 per kilogram, a target potentially reachable by decade’s end. However, Obin stresses this is still a long-term prospect, with meaningful scale unlikely before 2035–2040. For now, terrestrial data infrastructure remains essential, and companies should view space data centers as a future complement—not a replacement—to Earth-based operations.

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