Controversy Over Data Centers: A Space Odyssey or Earthly Dilemma?
During a tense vote on a data center being built in her drought-stricken Arizona district last summer, Tucson City Councilmember Nikki Lee made an unlikely pitch: “We’re going to get a little out-of-this-world for a second, so just bear with me.” Like many of her constituents, Lee did not want Project Blue, a sprawling 290-acre data center, gobbling up an ounce of her local drinking water. “We need to put data centers where they belong,” she asserted, adding, “we don’t think data centers belong in the desert.”
President Donald Trump’s recent bluster aside, it seems that hating data centers has become a rare bipartisan issue. The construction of these facilities has triggered controversy, incited backlogs, and incurred growing costs that now even spurred tech giants like Google, Meta, and SpaceX to consider orbiting options. Soon after the Tucson City Council rejected Project Blue’s request to connect to city utilities, Amazon Web Services, the intended beneficiary, pulled out of the project. In a surprising twist, Blue Origin, another Jeff Bezos company, filed plans for tens of thousands of new data centers, this time slated for orbit.
Protesters in Tucson demonstrate against Project Blue. Mamta Popat/Arizona Daily Star
The Case for Orbital Data Centers
Sure, launching a hyperscale AI data center into space is unprecedented from an engineering perspective and comes with an astronomical price tag. This venture may also create severe environmental risks, but for AI companies, such trade-offs might appear more palatable than dealing with terrestrial roadblocks, including extensive public backlash and a lengthy 12-year wait to connect to the power grid.
SpaceX’s recent initial public offering hinged on the ambition to launch a fleet of orbital data centers, theoretically fueling much of the AI economy. The company claims that by the end of the decade, possibly as early as 2028, it aims to establish a functioning AI data center in orbit, with the potential to harvest an astounding 100 gigawatts of new solar energy annually. This figure represents one-fifth of all U.S. electricity consumption last year, although such promises come with their uncertainties.
Google echoes this trend with plans to deploy dozens of orbital data centers, asserting that decreased launch costs could make space-based options cost-competitive with terrestrial data centers within the coming decade. “It’s no longer a question of if space-based data centers could be technically feasible, but when they’ll be ready to launch,” one expert noted.
Understanding the Economics of Space and Data Centers
The cost for a one-gigawatt data center in space currently stands at around $51.5 billion, compared to approximately $16 billion for a comparable facility on land. “They’re not breaking any rules of physics. Yes, there are engineering challenges, but they are all solvable with enough time and money,” explained Jason Aspiotis, an esteemed space systems engineer. What remains uncertain is the financial feasibility of such projects.
Even if these ambitious plans materialize, they might not resolve many issues faced by the general populace. High-energy bills are likely to persist, and constructing critical infrastructure—such as affordable housing and public transit—may remain as challenging as ever. In fact, diverting resources and tax revenue towards outer space may exacerbate the situation on Earth.
As foundational issues remain unresolved, the prospect of orbital data centers could merely reinforce a sense of exemption for tech giants, leaving local communities grappling with ongoing challenges.
Space-Based Data Centers: A Closer Look
My father, who spent much of his career in the satellite industry, once took me inside a small data center in his office, a room that housed multiple servers working tirelessly to process data. In comparison, AI data centers operate on a grander scale, demanding more land and energy, along with advanced cooling systems.
SpaceX’s reusable Starship rocket, which the company hopes will one day carry data center parts into orbit. Ronaldo Schemidt/AFP via Getty Images
An orbital data center would circumvent the need to negotiate with local politicians over water rights, but it comes with its own challenges. Facilities would require massive heat radiators to stay cool and would need to be constructed piece by piece in space, likely with robotic assistance. While solar power could offer abundant energy for these centers, radiation from space might pose risks to sensitive equipment. Issues like space debris and collisions in low Earth orbit could also jeopardize existing infrastructure.
While AI may not be the simplest task for space-based data centers, it is one of the most lucrative, enticing major firms to take on the considerable start-up costs. As terrestrial data center construction becomes increasingly challenging in the U.S., space offers the potential for a more convenient option sooner than many might expect.
A Future with Orbital Data Centers?
In the coming years, the possibility of orbital data centers may not be far-fetched. Krishna Muralidharan, who leads the Center for Semiconductor Manufacturing at the University of Arizona, predicts, “In some form or another, in five years, we are going to have some orbital data centers in space for sure,” though the scale of such initiatives remains uncertain.
Ultimately, the pressing question remains: is it preferable to have data centers in space or close to home? David Reid, a Virginia House member from Loudoun County, raises concerns that the hype around orbital data centers may distract from the pressing realities of local zoning and infrastructure needs. “This is, for lack of a better term, fictional nonsense,” he says, emphasizing the importance of making better local decisions.
The narrative surrounding data centers underscores a larger theme of humanity grappling with rapid technological advancements, often without having the opportunity to shape their development. The potential specter of an overpopulated sky filled with artificial satellites may prompt new considerations of what we truly value in our shared environment.
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