The problem is that it doesn't scale well. Manley's video is about a 20 kW load, which by the standards of data center compute is a teeny tiny little thing, well under one rack's worth of stuff. So, your choices are either to scale up each satellite by a factor of ten or a hundred, or to partition your distributed data center into lots and lots and lots of tiny nodes. Neither option is attractive. The latter approach will kill you on latency for any compute task that doesn't fit inside half a dozen GPUs. Which for modern AI is to first order "all of them". The former means that your individual nodes are a lot bigger, and also less efficient, The average distance from the load to the radiators goes up, and even with heat pipes and the like the efficiency of heat transfer goes way down. You almost have to adopt the ISS approach of active coolant loops flowing into the radiators, which means fun with pumps and so forth in a completely zero-maintenance context. Good luck!It is not that difficult in reality. Especially if you add some heat pumps to increase the radiator temperature. Scott Manley has a nice video about it.
The following can be true, at the same timeCan we stop pretending that the FCC chairman, who has for years been advocating for SpaceX and accused the previous FCC of "regulatory harassment" against them, is some principled independent arbiter here?
Oh, yes. It dates back to the 60s. The problem with such treaties--it is up the good-will and honor of good people to respect them. And when they don't--it is just words on paper.Are there any international laws in space? Obviously, you have left the regional / country level laws behind, much like going into international waters. But are there global laws that are just banned out right? If a country decides to limit the development of AI I can easily see how that basically throws a monkey wrench in any data centers located there. Which in turn limits your development speed of any AI system. Where as in space....you can just let AI run free and see what happens.
*and when I say AI I mean something beyond an LLM.
I design air conditioning and heat pump systems for a living. They are great because at many operating conditions you can reject 2-3 kW of heat for every 1 kW of energy you input.It is not that difficult in reality. Especially if you add some heat pumps to increase the radiator temperature. Scott Manley has a nice video about it.
You don't have to put entire racks in a single satellite--but then you create other problems. Like needing 100,000+ satellites to do the same compute as a single terrestrial data center (depending on the size of "data center' you want to compare to since they're all different).They don't have to put entire racks in a single satellite. The laser interlinks (not radio) mean that bandwidth between these units will be plentiful and low latency.
The "depreciation schedule" on this hardware is based on terrestrial data center opportunity cost and ongoing operating expenses. On Earth, you don't want to run 5-year-old hardware because the electricity, cooling, and datacenter space could be better spent on newer and more efficient hardware. Yet as I've said in other comments in other threads, this math is wholly different in space.
Once you have launched the satellite, you have paid for it's lifetime power and cooling needs. The only ongoing expenses are whatever the network downlink costs (trivial when you own the network) and any constellation management costs related to collision avoidance. Keeping older hardware running until their maneuvering fuel is low in order to run slower models (or even newer models more slowly) means you can keep eeking out revenue.
Think of how semiconductor manufacturing companies will keep running older fabs to produce less advanced chips, because the critical costs are the up front hardware and not the ongoing operations. The cost of putting datacenters in space is likely to be pretty comparable to building a new datacenter on Earth once you actually factor in the zoning politics, build timelines (the satellites can be "mass-produced" in a factory rather than built and wired on site), and lifetime power and cooling costs.
Space datacenters are going to be the only way to scale compute in a political environment that is increasingly hostile to new terrestrial datacenters. Ars doesn't give it a lot of attention, but there are a ton of jurisdictions throughout the US which are actively slowing or blocking construction of datacenters and considering legislation to outright ban them. There's even talk from members of Congress about moratoriums. They're noisy, they use lots of electricity (either driving grid prices up for constituents or burning fossil fuels and polluting heavily to generate their own supply), and often use a lot of water for cooling.
Unless your raison d'etre is to make more money than any human could ever spend in their life time, then no you're not on their level and you should be all the happier for it. These people sole existence is to make line go up. How fulfilling.I completely agree that the whole thing seems utterly pointless, but maybe I am just too stupid to understand thinking on their level.
Because the things in space need to communicate with things on the ground. And that requires a radio licence.What does anything that happens in space have to do with the FCC anyway? Just curious.
Watched the video. But the big issue is that he is way underestimating the power consumption of an AI datacenter. 20-100kW is nothing when AI datacenters are pushing 144kW per rack, of which a datacenter has many.It is not that difficult in reality. Especially if you add some heat pumps to increase the radiator temperature. Scott Manley has a nice video about it.
Bigger issue is all the trash being lifted up there and then deorbited. But when have rich ever bothered with impact of their BS on others. If they cared about others they would not be rich.
Ars is the perfect publication to either explain how these space-based AI data centers make any financial sense, or to show that it’s absolutely stupid (my bet is on the latter). Frankly, I’m disappointed that there hasn’t already been an investigative article on this, instead of just parroting the space company press releases.
They just made it. It's called the CRASH clock:They need to make a second Doomsday Clock, but this time for Kessler Syndrome rather than nuclear war.
I'm curious so I'll check that pod out but does it get into things like high availability, hardware management. like maybe if you took away the need to replicate data from one center to another it'd get easier, but it really just seems like there's a lot of challenges for not much benefit.If you want a deeper engineering perspective on this, Scott Manley just put out a podcast (“Is It Really Impossible To Cool A Datacenter In Space?” — March 19, 2026) that’s directly relevant.
The key takeaway is why small is better: ~20 kW is fairly doable, ~100 kW is pushing it, and beyond that the radiator scaling problem and maintaining orientation becomes brutal.
It really highlights the reasons behind the current thinking to have tens of thousands up to a million small orbital data centers.
And the constellation has many satellites.Watched the video. But the big issue is that he is way underestimating the power consumption of an AI datacenter. 20-100kW is nothing when AI datacenters are pushing 144kW per rack, of which a datacenter has many.
Are there any international laws in space? Obviously, you have left the regional / country level laws behind, much like going into international waters. But are there global laws that are just banned out right? If a country decides to limit the development of AI I can easily see how that basically throws a monkey wrench in any data centers located there. Which in turn limits your development speed of any AI system. Where as in space....you can just let AI run free and see what happens.
*and when I say AI I mean something beyond an LLM.
What's the play here? I don't understand what the benefit of a data center in the sky is over a data center in Stuttgart, Arkansas.
Or is this just a ploy for investor dollars and to justify Bezos' space ambitions?
It's going to get harder to get permits for big data centres on the ground. Isn't Ohio looking to ban them entirely? And then you need to supply them with power, which necessitates grid upgrades, or colocating gas turbines.What's the play here? I don't understand what the benefit of a data center in the sky is over a data center in Stuttgart, Arkansas.
Or is this just a ploy for investor dollars and to justify Bezos' space ambitions?
Heat pumps are not magic. The limit isn't even moving the heat from compute hardware to the radiator. The limit is how quickly the radiator can radiate the heat into space. You're going to quickly saturate the radiator unless it's massive.
It doesn't answer the fundamental question of why you even need this in the first place. Communication satellites solved a problem that has plagued humanity since it first started organizing into civilizations. There is no alternative to satellite comms when you are away from terrestrial networks. It's why comm satellites were one of the first practical applications of space.
Data processing doesn't have that need. If you have a network, you don't particularly care about where the numbers are being crunched. The data will get back to you. Which is why data processing has, typically, been done on the ground and why spaceborne data centers haven't really been attempted. It's not that we can't, it's that there's no point.
Not from those "Terminator Sun-synchronous orbits", their shade doesn't fall on earth, for the same reason that the satellites are always in sunlight. Terminator here means the circle where sunlight turns to shade.Guess they also will sell shade (from the constellation) to the highest bidder on earth...
but that is the reason. Solar panels are dirt cheap but does not work 24/7 on earth. In space they do. So you have to compare what is the cost of electricity on earth vs transport cost to a place where electricity is free.Ars is the perfect publication to either explain how these space-based AI data centers make any financial sense, or to show that it’s absolutely stupid (my bet is on the latter). Frankly, I’m disappointed that there hasn’t already been an investigative article on this, instead of just parroting the space company press releases.
This shouldn’t be hard. I feel like anyone in the space industry should be able to do some back-of-the-napkin math to show that it doesn’t make sense even with very generous assumptions (i.e., assume Starship is working and launches cost roughly what they’re currently projecting).
Some things to include:
- you have to compare against terrestrial data centers with the same latency (distance) to cities as low earth orbit
- whatever magic hand-waive they want to do for collecting heat (to make waterless cooling work in space) is also available for terrestrial data centers. Current data centers “need” water for open-loop cooling because that’s very cheap, but obviously they won’t have that in space.
- at least mention the problem of handing off user sessions, since the data center that was “close” to the user a few minutes ago is now over a different continent; for long AI queries, this can happen between when the user asks the question and when an answer is finished.
- AI data centers “need” lots of grid power, but they’ll be forced to provide their own power in space. Compare that price to them providing their own power for terrestrial data centers (yes, solar panels in space can get sunlight 24/7, but I suspect considerably cheaper to install panels on earth)
No it won't.They don't have to put entire racks in a single satellite. The laser interlinks (not radio) mean that bandwidth between these units will be plentiful and low latency.
Correct, it's far more expensive in space.On Earth, you don't want to run 5-year-old hardware because the electricity, cooling, and datacenter space could be better spent on newer and more efficient hardware. Yet as I've said in other comments in other threads, this math is wholly different in space.
Lol.The cost of putting datacenters in space is likely to be pretty comparable to building a new datacenter on Earth once you actually factor in the zoning politics, build timelines (the satellites can be "mass-produced" in a factory rather than built and wired on site), and lifetime power and cooling costs.
but that is the reason. Solar panels are dirt cheap but does not work 24/7 on earth. In space they do. So you have to compare what is the cost of electricity on earth vs transport cost to a place where electricity is free.
So if electricity is on average is 17 cents pr
kWh. And let us assume you use 20kW for 5 years. Then the electricity bill is approximately 150k usd. Not including any cooling power.
So if you build and transport that 20kW rack to space and last for 5 years for less than 150k then you could argue there might be a business case on electricity alone.
but that is the reason. Solar panels are dirt cheap but does not work 24/7 on earth. In space they do. So you have to compare what is the cost of electricity on earth vs transport cost to a place where electricity is free.
So if electricity is on average is 17 cents pr
kWh. And let us assume you use 20kW for 5 years. Then the electricity bill is approximately 150k usd. Not including any cooling power.
So if you build and transport that 20kW rack to space and last for 5 years for less than 150k then you could argue there might be a business case on electricity alone.
Edit:
If 60 satellites pr star ship launch and cost is 10 million per launch that gives a cost or satellite per 160k. So napkin math shows same order of price.
What's the play here? I don't understand what the benefit of a data center in the sky is over a data center in Stuttgart, Arkansas.
Or is this just a ploy for investor dollars and to justify Bezos' space ambitions?
But the meatbags left on Earth supporting the data centers in space still have to follow the law.Don't have to obey any laws in space.
I tried to put some numbers in my post. As you indicate it is all about cost. So if you can make a cheap transporter there might be a business case.Solar panels may be cheap but putting a solar panel into space isn't cheap not even when cheapER launch vehicles. Solar panels in space produce roughly 4x to 7x the annual output compared to on the Earth depending on exactly where you place them. The cost of delivery is on the order of 10,000x higher.
As a thought exercise if the power aspect of datacenters in space make sense why not just build solar power farms in space and beam it datacenters (and other high demand consumers) on the ground? If space based power doesn't make sense because it can't compete with terrestrial power prices how does attaching a datacenter to your uneconomical power generation become economical?
Sure, just like they do today.But the meatbags left on Earth supporting the data centers in space still have to follow the law.