Archive · 7 Sep 2026
Orbital Data Centres Promise AI Expansion, But Challenges Remain
Some technology companies are considering putting computer centres in space.
Space could provide lots of sunlight for electricity and more room to expand.
Space equipment might also release heat without using as much water for cooling.
Elon Musk thinks a launch could be attempted as early as late 2027.
Other experts believe useful data centres in space are more likely during the 2030s.
Launching heavy computers is currently extremely expensive.
Space computers would also need reliable connections, repairs, and protection from becoming outdated.
Experts expect space and Earth-based data centres to work together rather than one replacing the other.
Elon Musk is targeting a possible SpaceX launch attempt for orbital data centres as soon as late 2027.
Supporters say orbit offers continuous solar power, more expansion space, and cooling through radiators rather than water.
Experts say meaningful commercial scale is more likely in the 2030s because extensive launch and connectivity infrastructure is still needed.
Technical obstacles include cooling, in-orbit maintenance, hardware obsolescence, reliable communications, and high launch costs.
Boston Consulting Group projects space-based facilities could capture 10% to 15% of the global AI data-centre market by 2040, while operating alongside Earth-based centres.
- Who
- Elon Musk and SpaceX are pursuing the idea, while analysts and consultants including Evelyn Chow, Blaine Curcio, Rohit Jha, and Boston Consulting Group assess its prospects.
- What
- Technology firms are exploring orbital data centres to support growing artificial-intelligence computing demand.
- When
- SpaceX could attempt a launch as soon as late 2027; analysts generally expect meaningful scale in the 2030s, with market projections extending to 2040.
- Where
- In orbit around Earth, potentially in a dawn-dusk sun-synchronous orbit.
- Why
- Orbital facilities could access near-continuous solar power, avoid competition for land, reduce water-based cooling needs, and process some types of AI workloads.
Space Optimists
Cautious Analysts
Commercial timeline
Space Optimists
Elon Musk is targeting a possible SpaceX launch attempt as soon as late 2027, and SpaceX's track record may allow it to move faster than expected.
Cautious Analysts
Evelyn Chow, Blaine Curcio, and Boston Consulting Group say meaningful scale is more likely in the 2030s, with cost parity unlikely during this decade.
Value of orbital facilities
Space Optimists
Supporters point to near-limitless solar energy, expansion space, lower land pressure, and radiator-based cooling that could reduce water use.
Cautious Analysts
Critics highlight unresolved cooling, maintenance, connectivity, hardware-obsolescence, and launch-cost problems that could limit practical adoption.
Replacement or complement
Space Optimists
The concept could become a major AI infrastructure market, potentially generating $240 billion to $320 billion annually by 2040.
Cautious Analysts
Boston Consulting Group expects orbital and terrestrial centres to operate side by side; real-time AI, autonomous systems, and large-model training are expected to remain on Earth.
- Possible launch timing
- SpaceX chief Elon Musk has discussed an attempt as soon as late 2027.
- Current launch cost
- Boston Consulting Group estimates approximately $1,500 per kilogram.
- Estimated cost for 1 gigawatt
- Placing 1 gigawatt of computing capacity in orbit could cost close to $30 billion at current launch rates.
- Potential future launch cost
- Costs could fall to around $100 per kilogram as reusable heavy-lift rockets advance.
- Projected market share
- Space-based data centres could reach 10% to 15% of the global AI data-centre market by 2040.
- Projected annual revenue
- Boston Consulting Group estimates $240 billion to $320 billion from applications suited specifically to orbit.
- Likely workloads
- Latency-tolerant AI inference, sovereign AI workloads, and processing of data collected in orbit are potential candidates.