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Fortune
Fortune
Technology
Sharon Goldman

AI data centers in space are having a moment. Experts say: Not so fast

Man speaking with a blue background. (Credit: Fabrice COFFRINI—AFP/Getty Images)

Even as technology companies are projected to spend more than $5 trillion globally on earth-based data centers by the end of the decade, Elon Musk is arguing the future of AI computing power lies in space—powered by solar energy—and that the economics and engineering to make it work could align within a few years.

Over the past three weeks, SpaceX has filed plans with the Federal Communications Commission for what amounts to a million-satellite data-center network. Musk has also said he plans to merge his AI startup, xAI, with SpaceX to pursue orbital data centers. And at an all-hands meeting last week, he told xAI employees the company would ultimately need a factory on the moon to build AI satellites—along with a massive catapult to launch them into space.

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