Elon Musk is getting serious about orbital data centers

Elon Musk is advancing plans to develop orbital data centers—networks of AI computing infrastructure operating in space—by formally merging SpaceX with his AI company xAI and filing proposals with the FCC. This merger signals a strategic alignment of Musk’s space and AI ventures, suggesting a joint infrastructure project aimed at leveraging the unique advantages of space-based data centers. The FCC has accepted the filing and opened it for public comment, with chairman Brendan Carr showing support, indicating regulatory approval is likely. Musk argues that orbital data centers will be more economically viable by 2028 due to the higher solar power generation in space, which could significantly reduce energy costs compared to terrestrial data centers. He predicts that within five years, more AI computing power will be launched and operated in space annually than the cumulative total on Earth. However, some experts note gaps in this logic, pointing out that power is only one of many costs in running data centers and that maintenance challenges, such as servicing GPUs in orbit, remain unresolved.