As the world races into the era of generative AI, one challenge looms large: soaring, unsustainable energy demand. The computing power required to train and run advanced AI models is exploding, and researchers warn that traditional Earth-based data centers may not be able to keep up.

In response, several companies are looking upward—literally. A new frontier is emerging as space firms push to build data centers in orbit, a move they believe could solve AI’s power problem. Elon Musk signaled SpaceX’s entry into the race last month, and now The Wall Street Journal reports that Jeff Bezos’ Blue Origin has quietly been working on its own orbital data center technology for more than a year.

Figure 1. AI Data Centers in Orbit.

Why Space May Hold the Key to AI’s Energy Demands

Earth’s orbit is already crowded, with astronomers warning about the risk of a cascading collision chain known as Kessler Syndrome. Even so, the rush toward orbital data centers appears to be accelerating—driven by the physics and economics of AI. Figure 1 shows AI Data Centers in Orbit.

A Goldman Sachs analysis earlier this year projected that AI-related energy consumption could surge 165% by 2030. Space-based data centers could ease that burden by tapping into two major advantages: constant, uninterrupted solar power, available 24/7 above Earth’s atmosphere naturally cold temperatures, reducing or eliminating the massive cooling systems required on Earth.

These benefits could drastically reduce costs and environmental impact. The concept already has support from major tech figures [1]. Former Google CEO Eric Schmidt recently bought Relativity Space with plans to develop orbital data centers. In October, Musk said SpaceX would use its Starlink infrastructure to support space-based computing. “Scaling up Starlink V3 satellites, which have high-speed laser links, would work,” Musk posted on X. “SpaceX will be doing this.”

Bezos' Long-Term Vision: Gigawatt-Scale Computing in Orbit

Bezos has long imagined moving heavy industry beyond Earth. In an interview reported by Reuters in October, he predicted that gigawatt-scale orbital data centers could be operating within 10–20 years. “We’ll beat the cost of terrestrial data centers,” he said. “Solar power is always available in space—no clouds, no rain, no weather.”

Meanwhile, Aetherflux, a space solar power startup, announced its “Galactic Brain” initiative this week, aiming to build sunlight-harvesting data centers beyond Earth. CEO Baiju Bhatt said the technology “removes the limits faced by Earth-based data centers.”

A New Front in the Musk–Bezos Rivalry

With both SpaceX and Blue Origin now committed to orbital cloud infrastructure, Musk and Bezos are squaring off on yet another technological frontier. The rivalry is already intensifying: Bezos recently launched a new AI company, Project Prometheus, where he serves as co-CEO.

Blue Origin aims to land its Mk1 lunar lander early next year—potentially giving NASA an alternative to SpaceX’s delayed Starship for the Artemis III mission. The private space race is no longer just about rockets or lunar missions. It’s about powering the next generation of intelligence—and the battleground may well be Earth’s orbit.

References:

1. https://interestingengineering.com/space/orbital-ai-data-centers

Cite this article:

Keerthana S (2025), SpaceX and Blue Origin Ignite New Front in Space Race: AI Data Centers in Orbit, AnaTechMaz, pp.176