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Elon Musk Has Grand Plans for Data Centers in Space. Experts Are Skeptical

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Analysts and experts point to major safety and technical hurdles with SpaceX CEO Elon Musk’s vision for a network of orbiting data centers powered by one million satellites.
Elon Musk claims to be serious about creating a network of orbiting data centers using one million satellites, but some industry analysts and space experts have their doubts.
« Feasible in what timeline? » asked Lluc Palerm, a satellite research director at consulting firm Analysys Mason. « This seems more a long-term goal,” he said, likening it to a mission to Mars.
Musk has been hyping up the one-million-satellites plan, betting that the AI gold rush belongs in orbit. « In the long term, space-based AI is obviously the only way to scale », the SpaceX CEO said in a Monday post that announced SpaceX’s acquisition of xAI and cited the benefits of harnessing the sun’s energy through a network of satellites. SpaceX is preparing an IPO that’s expected to raise as much as $50 billion in an effort to fund orbital data centers.
SpaceX argues that the next-generation satellite network will beat ground-based data centers on cost and energy efficiency. A key challenge facing orbiting data centers is the lack of air to cool a GPU in the vacuum of space. However, with one million satellites, SpaceX could make the data centers relatively small, and thus easier to cool, according to industry analyst Carlos Placido.
« Large, power-hungry processors require disproportionately large radiators. Rather than deploying fewer, massive satellites, SpaceX appears to be exploring a highly distributed architecture: many smaller AI nodes, each with modest compute power, interconnected by laser link,” he wrote.
But some question whether we’d switch from one environmental hazard to another, given the number of rocket launches that would be required to send up one million satellites. Not to mention the clutter in Earth’s orbit. The number is staggering considering its monumental jump (or about a 68x increase) from the 14,500+ satellites already in orbit, according to data from astronomer and satellite tracker Jonathan McDowell.
« I think it is going to be extremely difficult to operate such a huge number of satellites safely », he said, noting that if you include plans from China, 1.7 million satellites have been proposed for the future. “This is a factor of 100 increase over the already large number extant today. »
The also means the increased risk of potential collisions between satellites and space debris. “SpaceX will say they can do that station-keeping successfully, but it doesn’t take many failures to have you end up in a bad situation,” McDowell added. In a worst-case scenario, a mishap could trigger the “Kessler syndrome,” where Earth’s low orbit has become so cluttered with satellites and debris that any pile-up could create a chain reaction of colliding material.

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