Tech CEOs Bet on Space Data Centers as AI Demand Soars
Tech leaders are increasingly turning their attention to space as the next frontier for data centers, driven by the surging energy demands of artificial intelligence. Google CEO Sundar Pichai recently joined the conversation, calling the idea of space-based data centers a "moonshot" but one that makes sense in the long term. Speaking on the "Google AI: Release Notes" podcast, Pichai acknowledged the concept might sound "crazy" today, but emphasized that with the exponential growth of AI compute needs, it’s only a matter of time before such ambitions become reality. Pichai was referring to Project Suncatcher, a long-term research initiative Google announced in November with the goal of eventually scaling machine learning operations in space. While details remain sparse, he hinted at a potential milestone: “In 2027, hopefully we’ll have a TPU somewhere in space,” referring to Google’s custom AI chips. His comment included a playful nod to Elon Musk’s 2018 launch of a Tesla Roadster into orbit, complete with a mannequin in a SpaceX spacesuit. The car, still drifting through deep space, was briefly mistaken for an asteroid earlier this year. Musk has taken the vision further, suggesting that SpaceX’s Starship could deliver up to 300 gigawatts per year—possibly as much as 500 GW—of solar-powered AI satellites to orbit. That capacity, Musk argued, would be transformative. For context, global data center electricity consumption on Earth currently stands at 59 gigawatts, according to Goldman Sachs. With AI driving a surge in demand, data centers are now the primary force behind rising electricity consumption in the U.S., putting strain on the national power grid. Other tech executives are echoing this sentiment. Jeff Bezos has predicted that data centers will move to space within the next 10 to 20 years. OpenAI CEO Sam Altman, in a July interview with comedian Theo Von, even speculated about more ambitious concepts: “Maybe we build a big Dyson sphere around the solar system and say, ‘Hey, it actually makes no sense to put these on Earth.’” Salesforce CEO Marc Benioff has also weighed in, highlighting the unique advantages of space. In a recent post on X, he noted that space offers “continuous solar” energy and eliminates the need for batteries or traditional cooling systems—two major costs for Earth-based data centers. “The lowest cost place for data centers is space,” Benioff wrote, referencing a clip of Musk discussing orbital AI infrastructure at the U.S.-Saudi Investment Forum. While these ideas remain speculative and face immense technical and economic hurdles, they reflect a growing consensus among tech leaders: the Earth may not be able to sustain the energy demands of AI’s future. As compute needs skyrocket, space could become not just a distant dream, but a necessary solution.
