SpaceX's ambitions to build data centers in orbit are being cited as one factor supporting its valuation of roughly $1.8 trillion, but Google's energy chief says the economics of the concept are far from workable today.
Orbital data centers · SpaceX valuation
Orbital data centers remain a long-term bet, not a workable business today
SpaceX's ambitions in space-based computing are cited as one factor behind its roughly $1.8 trillion valuation. Google's energy chief, Amanda Peterson Corio, says the economics are far from workable, citing launch costs and the difficulty of maintaining hardware in orbit.
$1.8T
Roughly the valuation of SpaceX, a figure investors link in part to orbital computing ambitions.
2
Main obstacles named: the enormous cost of launching hardware, and the difficulty of maintaining it in orbit.
How the economics break down
Every server, power system and cooling component must be carried to orbit, and repairs that are routine on the ground become far harder.
1. Launch
Enormous cost to carry hardware to orbit
→
2. Deploy
Servers, power and cooling all shipped up
→
3. Maintain
Upgrades and repairs are far harder in space
→
4. Cost per unit
May stay well above what operators pay on Earth
The case for orbit
Could tap continuous solar power
Could avoid some land and grid constraints
Offers a possible answer to AI's growing power and cooling demands
The critical view
Potential advantages do not yet offset high launch cost
Operational risk remains high without practical in-orbit repair
The valuation narrative runs ahead of present economics
What would change the picture
The gap between the valuation narrative and today's economics is the central point of contention.
Launch costs fall sharply
Required for orbit to compete on cost per unit of computing.
In-orbit maintenance becomes practical
Needed for hardware to remain viable over its working life.
Continue reading The rest of this article is for AI News Blitz readers. Choose an option below to keep reading.
Already purchased? Sign in ✓ Signed in — this article isn’t included in your current plan.Unlocking the full article...