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Barchart
Barchart
Anushka Mukherji

Sam Altman Casts Doubt on Space-Based Data Centers, But This 1 Hot Stock Is Determined to Make Them a Reality

Artificial intelligence (AI) demand is exploding, and the data centers powering it are expanding just as fast. These facilities are the backbone of the AI boom. But here on Earth, they come with real headaches. Massive electricity consumption, heavy water use for cooling, and growing land constraints. That’s exactly why some companies, including tech giants like Alphabet (GOOG) (GOOGL), are beginning to look beyond the planet for answers. And surprisingly, space makes a compelling case.

When it comes to power and heat management, space has clear advantages. By placing a data-processing satellite in the right orbit, it can enjoy constant sunlight, allowing solar panels to generate virtually unlimited energy. At the same time, radiators positioned on the shaded side of the spacecraft can efficiently release excess heat into the freezing vacuum of space. Still, not everyone is convinced this is practical today.

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