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Musk is serious about building AI data centers in space
Space will be the cheapest place for AI data centers, says Musk

Musk is serious about building AI data centers in space

Feb 06, 2026
04:01 pm

What's the story

Elon Musk has predicted that the most cost-effective location for artificial intelligence (AI) data centers will not be on Earth, but in space. The tech billionaire made this bold prediction during a podcast, co-hosted by Dwarkesh Patel and Stripe CEO John Collison. He said, "In 36 months, the most economical place for AI will be space." This comes as part of his larger plan to set up a network of solar-powered data centers in orbit.

Project details

SpaceX's proposal for orbital AI computing network

SpaceX has filed a proposal with the US Federal Communications Commission (FCC) for an orbital AI computing network powered by solar energy. The plan envisions a constellation of data centers in orbit, capable of handling AI workloads in space. The FCC has accepted the filing and opened it for public comment, a procedural formality. FCC chairman Brendan Carr's support could potentially ease the regulatory process for Musk's ambitious project.

Cost efficiency

Musk's rationale for space-based data centers

Musk explained the rationale behind his plan on the podcast, saying "It's harder to scale on the ground than it is to scale in space." He added that any given solar panel would generate about five times more power in space than on Earth. This makes it cheaper to run operations in orbit. The idea is to use solar energy for the massive computing needs of next-gen machine learning models.

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Logistical hurdles

Challenges and skepticism surrounding Musk's vision

Despite the potential benefits, Musk's plan has been met with some skepticism. Critics have pointed out that data centers need more than just electricity to function. Maintenance, cooling, and hardware servicing could be major logistical challenges when these operations are in orbit. However, Musk remains optimistic about his vision for space-based AI data centers.

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Energy advantage

The physics behind Musk's prediction

The physics behind Musk's prediction is sound. Solar panels in space generate five times more power than those on Earth, as they get uninterrupted sunlight without atmospheric interference. This could significantly reduce one of the biggest costs in AI computing: energy. If Musk's prediction holds true, a portion of global data center capacity spending could soon be shifted off-planet.

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