Outer Space is the Only Way to Scale AI

The Heat is Real

Ever stood next to a gaming PC running at full tilt? Now multiply that by about a million. High-density AI clusters—the kind running the latest large language models—generate five times more heat than conventional servers. These things are basically space heaters that occasionally do math. To keep all that silicon from melting into expensive puddles, data centers are using millions of gallons of water every single day. In an era where water scarcity is becoming a genuine crisis in many parts of the world, that’s… not great. We’re literally draining aquifers to train AI models.

Running Out of Room

Then there’s the land problem. These facilities aren’t exactly compact. Hyperscale data centers need massive footprints, and communities are increasingly saying “not in my backyard” to proposals for new ones. Some projects are facing years-long delays just waiting for grid connections. Others can’t find suitable locations at all. So we’ve got an energy crisis, a water crisis, and a real estate crisis—all converging on an industry that’s supposed to be the backbone of our technological future. What’s the solution? Look Up

Here’s where it gets interesting. Space, as it turns out, solves basically all of these problems. 

Power? In the right orbit, solar panels can catch sunlight nearly 24/7. No clouds, no weather, no nighttime (well, barely any). You get consistent, abundant, free energy beaming down from a fusion reactor 93 million miles away. That’s about as renewable as it gets. 

Cooling? This is the really elegant part. Space is cold. Like, really cold. The vacuum of space acts as an infinite heat sink. You don’t need millions of gallons of water or massive HVAC systems. You just… let the heat radiate away. It’s passive cooling on a cosmic scale. 

Space? I mean, come on. It’s literally called space. We’re talking about near-unlimited room for expansion. No zoning boards, no NIMBYs, no competing land uses. Just endless vacuum waiting to be filled with TPUs.

The Big Players Are Already Making Moves

If you’re thinking this is all theoretical—some far-off possibility being kicked around in academic papers—think again. The biggest names in tech are putting serious money behind this idea.

Google’s Project Suncatcher

Google has officially gone full moonshot with Project Suncatcher. The plan? Deploy constellations of solar-powered satellites loaded with Google’s custom Tensor Processing Units, all connected by high-bandwidth laser links forming a distributed supercomputer in orbit.

They’re not just drawing up blueprints either—a prototype mission in partnership with Planet is set for early 2027 to test the core technologies. Google is actively working on radiation-hardening their TPUs and figuring out how to control tightly clustered satellite formations. When Sundar Pichai says “our TPUs are headed to space,” you know things are getting real.

SpaceX: Elon’s Orbital Ambitions

Of course Elon Musk is involved. How could he not be? SpaceX is planning to turn future generations of Starlink satellites into full-blown orbital data centers. The next-generation Starlink V3 satellites will be significantly larger and more powerful than their predecessors, equipped with processors and inter-satellite laser links to create a computing mesh network in space.

The timing here isn’t coincidental. Musk’s AI company xAI needs enormous computational resources to train models like Grok. Building that infrastructure in space, using SpaceX’s own rockets, is a very Musk way of solving the problem. Reports suggest SpaceX is even considering a massive IPO—potentially valued at $1.5 trillion—partly to fund this orbital computing vision.

Amazon’s Project Kuiper

Not to be outdone, Jeff Bezos has his own satellite play with Project Kuiper (recently rebranded Amazon Leo). While primarily positioned as a broadband internet constellation, the deeper play is integration with AWS. Kuiper will provide enterprise and government clients secure, direct connectivity to Amazon’s cloud from anywhere on Earth—no public internet required.

Bezos himself has publicly discussed how space-based data centers could benefit from natural cooling and more effective solar power within the next 10 to 20 years. When the guy who built AWS starts talking about orbital computing, it’s probably time to pay attention.