Technology

Of course they are, same with undersea data centers (for different reasons).

But it doesn't matter. In the late-stage capitalism we find ourselves in, you don't need a real product, nor a promising prototype. You don't even need a good idea, you just need the promise that you'll come up with a good idea soon. That's enough to get the investors drooling, the shareholders hyped, and the gullible idiots engaged.

And you only have to maintain that long enough to pay yourself and your insiders some fat checks. Then when inevitably, reality barges in and people start to realize it was all bullshit and pipe dreams, you've already cashed out. If your PR team is good, the media and your sycophantic fans will praise you as a visionary who was simply, "ahead of their time." And you can go on to rip off more people.

It's basically Patreon scams but with billions of dollars.

There was one study where they set the price of launching at 0 and it's still a lot more expensive to use data centers in space.

The real issue with space-based data centers isn't just whether they’re a "bad idea" from an engineering perspective; it’s that they represent the ultimate transition toward a vertically integrated, unregulated monopoly. While everyone is focused on the technical hurdles, we need to look at who actually benefits from this shift. For someone like Elon Musk, this isn't just a project—it's a way to own the entire global internet stack. Because he owns the "truck" (SpaceX) and the "road" (Starlink), he can launch and link these data centers essentially for free. This creates a market that is so tightly locked into one ecosystem that it can never be challenged by a terrestrial competitor.

​From a purely operational standpoint, space turns every earthly liability into a superpower. Data centers on the ground are a nightmare of land taxes, massive water consumption for cooling, and constant strain on local power grids. In orbit, those costs vanish. Heat is radiated into the vacuum for free, and solar power is available 24/7 without weather or night cycles getting in the way. Even the physical security is inherently top-notch because the hardware is literally unreachable. When you combine that with a mesh network like Starlink, the need for laying fiber lines disappears entirely. The user just needs an antenna, and the "gatekeeper" handles everything else in the sky.

​The terrifying downside is that this creates a jurisdictional black hole. If a server is orbiting 500km above the Earth, whose laws actually apply to the data stored on it? We’re talking about a "gated community" where the ownership, pricing, surveillance policies, and privacy standards are all controlled by a single entity with zero competition or government oversight.

Once we stop building ground infrastructure and rely solely on the "space cloud," we lose all leverage. It’s an engineering miracle for the person who owns it, but it’s a democratic nightmare for the rest of us. It’s not just a bad idea; it’s the construction of a digital kingdom that sits physically and legally beyond our reach.

Shame you can't do some sort of thermoelectric power generation thingie with all the heat from these data centres.

It doesn’t matter.

It’s a fantasy in billionaire's heads, a self-perpetuating meme, and no one is telling them no. So they’re going to fund it, whether it makes any sense or not.

Reality doesn’t really matter anymore.

As someone who designs and builds networks as a profession, I don't see this being a great idea. Maybe I just don't have all the facts.

I am leaning heavily on the example of M$ trying an underwater datacenter, which they decommissioned and have not pursued further. Put a node of compute somewhere and eventually it will become obsolete or unusable due to hardware failure. Not to mention the energy requirements and cooling needed in space. Waste heat does not just dissipate unless it has a heat sink, which adds more volume and mass to the payload!

I feel like on part no one ever mentions on things like this are, how do you enforce any jurisdiction on a satellite and what it's doing.

The main crazy thing about a satellite data enter is you can't confiscate it and therefore you can't control it. Hell once it's up there the only thing any government might be able to do is find the owner and force them to crash it (if possible).

It in a sense sounds a bit like the wild west of the original internet. Admittedly Musk being at the forefront of it all sounds terrible, but I think there is something fascinating about an information hub that could be completely independent of any country.

I said so long ago. Flying masses of stuff into orbit, keeping it alive in a relative high radiation environment, cooling issues (there is no local river you can conveniently turn into steam), the list is long. Getting free power from large solar panels does not make up for it.