Companies Explore Space-Based Data Centers to Combat Emissions

Advancements in artificial intelligence are fueling an unprecedented demand for data centers, prompting several companies to explore the possibility of launching these facilities into space. Traditional data centers, which house the computers that process and store vast amounts of data, require significant land and energy, leading to substantial carbon dioxide (CO2) emissions. According to Goldman Sachs, the power demand for data centers is projected to increase by 165% by 2030.

While some data centers utilize renewable energy sources, and others are being designed with on-site renewable energy generation, the challenge of finding suitable land remains. Space-based data centers could offer a solution, allowing unlimited access to solar energy without the interruptions caused by weather or the day-night cycle on Earth.

European Initiatives and Technological Challenges

In Europe, the ASCEND project is at the forefront of this initiative, aiming to demonstrate the feasibility of space-based data centers to help reduce emissions. A study led by Thales Alenia Space, funded by the European Commission, highlighted that utilizing continuous solar energy in space could provide “a more eco-friendly and sovereign solution for hosting and processing data.” However, achieving this vision depends on significant technological advancements.

As stated by Xavier Roser from Thales Alenia Space, current rocket emissions, while minimal compared to the aviation industry, present a challenge. The ASCEND study indicates that for space data centers to effectively lower carbon emissions compared to their terrestrial counterparts, rockets would need to emit ten times less carbon over their lifecycle than existing models. The timeline for such innovations remains uncertain.

Emerging Startups and Global Developments

Companies like Madari Space, based in Abu Dhabi, are taking initial steps by collaborating with industrial accelerators to launch small computing components into orbit as technical demonstrations. Founder and CEO Shareef Al Romaithi, who also serves as a pilot for Etihad Airways, envisions that space-based data centers could serve various clients, such as those operating Earth observation satellites. By processing raw data in space, users could significantly reduce lag time and enhance decision-making capabilities.

Madari Space’s first mission is slated for 2026, involving the launch of a payload approximately the size of a toaster oven, which will include data storage and processing components. This mission will be part of the UN Office for Outer Space Affairs’s Access to Space for All Initiative.

Other companies are also making strides. In May, China launched twelve satellites as a precursor to a planned fleet of 2,800 satellites designed for space-based data processing. Al Romaithi emphasizes that the progress made should prompt serious consideration of space as a viable location for data centers.

In March, Lonestar Data Holdings from Florida reported successful testing of a small data center on the moon, despite experiencing technical difficulties. Additionally, Starcloud, a startup from Washington state, plans to launch a satellite equipped with an Nvidia H100 graphics processing unit in November, aiming to set a record for the most powerful computing capability in orbit. CEO Philip Johnston predicts that in a decade, most new data centers will be built in space due to the constraints faced by terrestrial projects.

While the potential for space data centers is promising, experts remain cautious. Quentin A. Parker, director of the Laboratory for Space Research at the University of Hong Kong, questions the economic viability of such initiatives. He argues that terrestrial solutions are likely to remain less expensive than launching data centers into space, which is fraught with complications.

Concerns about the sustainability of these ventures include the risks of space debris, radiation, and the need for a viable plan to manage the increasing number of human-made objects in orbit. Parker warns that the growing volume of space junk poses a threat to existing technologies and that maintaining and repairing space-based data centers could present significant challenges.

Despite these hurdles, advocates like Al Romaithi argue that exploring off-planet solutions is essential. He asserts, “It is worth overcoming these challenges because the alternative is technological stagnation.” As the demand for data centers continues to rise, the push for innovative solutions is more urgent than ever.