this post was submitted on 05 Nov 2026
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Yeah it's tricky, given the pushback people are showing against datacenter construction, the issues around power, the vulnerability to attack... The space data center idea is starting to become more attractive to big tech over time, not less.
Initially, everyone agreed that the numbers just don't add up, there's no way it could be economical. But then these terrestrial datacenters started getting a lot of bad press, everyone was concerned about the environmental impact, about the strain on the energy grid, about water usage. All of a sudden the space plan is seeming less crazy.
You're thinking about the right things here, these are major issues! But, they can largely avoid serious problems here. Over 500 km, there's a lot less drag and these aren't just going to fall out of the sky. And under 1000 km the earth's magnetic field still mostly protects them from high energy particles. They will still definitely be more exposed to high energy particles causing random bit flips, but it's going to be in a totally manageable range.
Giant AI datacenters will truly never be an efficient or wise use of resources, at least in my opinion, it's just a largely stupid endeavor. But for better or worse, I expect we will be seeing some of these space based data centers in the near future. I guess we'll just have to wait and see how economically sustainable they are...
Bad press doesn't mean they can start losing even more money on space data centers (which are going to be incredibly inefficient and costly). They already do not make a profit, they're all deep in the red.
Drag is not the only problem (even though these would definitely be LEO, it is just even more expensive to not have them in LEO and it increases latency), nor are bit flips. The biggest issue will continue to be heat. If you haven't been to a data center before, you may be surprised at how much heat they generate. I've only been to non-LLM data centers, and the heat in the warm aisles was unbearable.
And that's without the sun heating the exterior to incredible amounts. You cannot use contact to dump heat into space.
You might also be surprised at how much e-waste data centers generate, especially LLM-geared data centers. They obliterate hardware, even with optimal cooling, and that hardware requires constant replacement. How are they going to manage that?
Also, unless they use nuclear (which would drastically increase costs and add heat) they're going to need gigantic solar arrays, much bigger than the IIS' array.