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Technology companies are considering the concept of constructing data centers in space and utilizing solar energy to fulfill extraordinary power requirements amid a competitive artificial intelligence race.

A US-based startup named Starcloud recently launched a satellite the size of a refrigerator, which includes an Nvidia graphics processing unit (GPU), into space. This move has been celebrated by the AI chip manufacturer as a “cosmic debut” for the compact data center.

“The concept is that it will soon be far more logical to construct data centers in space rather than on Earth,” said Philip Johnston, CEO of Starcloud, at a recent technology conference in Riyadh.

In addition to a continuous flow of solar power, data centers are simpler to cool in space, supporters point out.

Numerous updates have been released rapidly, with the most recent being Google’s announcement this week of intentions to deploy test satellites by early 2027 as part of its Suncatcher initiative.

This information was released just a few days following tech magnate Elon Musk’s assertion that his SpaceX company could be ready to launch data centers into space next year, thanks to its Starlink satellite initiative.

Starcloud’s satellite was launched into space by a SpaceX rocket on Sunday.

Junk and radiation

Ongoing initiatives to launch data centers into space aim to utilize groups of low Earth orbit satellites that are spaced closely enough to provide stable wireless communication.

Lasers will link space-based computers with ground systems.

“From a proof of concept, it’s already in place,” said Krishna Muralidharan, an engineering professor at the University of Arizona, who is engaged in this research.

Muralidharan thinks that space-based data centers might become economically feasible within roughly ten years.

Jeff Bezos, the founder of Amazon and leader of the private space exploration company Blue Origin, has predicted it could take as long as double that time.

Important technical challenges must be addressed, especially the damage caused to GPUs by intense radiation and extreme temperatures, as well as the risk of collision with space debris.

“Engineering work will be required,” stated Christopher Limbach, an assistant professor of engineering at the University of Michigan, arguing that it is a question of cost rather than technical possibility.

Sun synched

The main attraction of space for data centers is the availability of power, including the possibility of aligning satellites with the sun’s path to maintain continuous sunlight on solar panels.

Major technology companies constructing AI data centers are experiencing an increasing demand for electricity, and have begun investing in nuclear power facilities.

Space-based data centers also bypass the issues of obtaining land and complying with local regulations or facing opposition from communities.

Supporters claim that data centers located in space have a lesser overall impact on the environment, except for the pollution caused by rocket launches.

The water required to cool a space-based data center would be similar to that used by a space station, utilizing exhaust radiators and recycling a limited volume of liquid.

“The true issue is whether the concept is economically feasible,” stated Limbach.

A challenge in launching servers into space has been the expense of transporting them into orbit.

However, a reusable SpaceX super rocket named Starship, capable of carrying large payloads, is expected to reduce launch costs by a minimum of 30 times.

“Traditionally, expensive launch expenses have been a major obstacle for extensive space-based systems,” said Travis Beals, head of the Suncatcher project, in a post.

However, data on project launch pricing indicates that prices could decrease by the mid-2030s, to the extent that “operating a space-based data center might become similar” to having one on Earth, Beals noted.

“If there was ever a moment to explore new economic routes in space—or revive existing ones—it’s now,” Limbach stated.